(DAILY NOTION): BTC/USD: Battle Between Bulls and Bears Heat Up: Next Mover: Risk-On Sentiment in The Market

Source: Yahoo Finance

BTC/USD has risen from the ashes after hitting a low of $31,030.27 to its present price of $32, 152.37. The BTC/USD bulls fought back hard to climb progressively upwards, but can the bulls win this battle? After hitting $34,801.25 on Monday, the price of BTC/USD has been trending downwards.

The Relative Strength Index (RSI) at the time of writing stands at 41, having dipped an overbought condition of 81. This could point towards some uncertainties among traders at the moment. The Moving Average Convergence Divergence (MACD) is currently pointing towards a bearish reversal.

Analyst Anil Panchal from FX Street opines that further weakness cannot be ruled out. He also believes that $30,900 can act as immediate support, before an ascending trend line from December 30, close to $29,000 is highlighted. Other key support levels to watch would be $28,770 and $27,777, which is Friday’s low and the month’s low, respectively.

Meanwhile, in the markets, a risk-on sentiment is tangible as the International Monetary Fund (IMF) has raised its forecast for global economic growth this year, including a rise in the gross domestic product (GDP) forecast from 5.2% to 5.2%. In response, both Wall Street and the European markets showed gains.

Once again, a boost in risk-on sentiment might not bode well for Bitcoin and the rest of the cryptocurrencies, after having benefitted from outflow of funds from more traditional investment instruments when the pandemic hit.

Will this power the BTC/USD bears even further? Let’s watch this interesting battle.

BTC/USD (as of Jan 27, 2021, 9.52 a.m., GMT +8) - $32,152.37

FOLLOWME BTC/USD User Sentiment (as of Jan 27, 2021 at 10.15 a.m.)

Short – 53.50%

Long – 46.50%