(DAILY NOTION): Will the BTC/USD Bulls Take On $40,000 Next? Next Mover: Update from U.S. Georgia Runoff Elections, Nonfarm Payrolls

Source: Yahoo Finance

The BTC/USD bulls have done it again! They have taken the $37,000 level. This time, it is not only seasoned traders and Bitcoin believers that are cheering the bulls on, but rather a larger group of spectators who are looking to be well on their way to become Bitcoin believers themselves. The year 2020 has since institutional investors joining retail investors in purchasing Bitcoin to make up part of their portfolio. One example of these institutional investors is Sky Bridge capital which made a $300 million investment into Bitcoin in November and December alone. The Bitcoin bulls are clearly having a good start to the year as BTC/USD has recorded a stellar 30% gain in the past seven days.

Analyst Anil Panchal from FX Street opines that a bullish Moving Average Convergence Divergence (MACD) are on the bulls’ side. Successful trading above the ten-day Simple Moving Average (SMA) also support this case. The 37,500 and 38,000 level would be key on its upward journey towards $40,000. However, Panchal is also cautioning that an overbought Relative Strength Index (RSI) could deter the bulls from the upward journey. At time of writing, the RSI stands at 72.

The world watched in disbelief as the U.S. Capitol was stormed by Trump’s supporters last night, reminiscent of a scene from a Hollywood movie. In its coverage, the Cable News Network (CNN) has cheekily included the fact that the last time that U.S. Capitol had been overrun was back in 1814, when the British attacked and burned the building. It seems rather absurd that this is happening in this modern age. A woman had also been fatally shot during the incident. All of these would add on to the risk-off sentiment in the market, which could definitely propel BTC/USD higher.

Furthermore, the ADP employment report showed that a total of 123,000 lost their jobs in December. The forecast was 88,000 jobs gained. What will the nonfarm payroll, that is due for release tomorrow, show?  

As the first week of 2021 is nearing to a close, the prevalent question is: will the $40,000 mark be reached soon? If yes, this would make for a glorious beginning for the flagship cryptocurrency that has earned the nickname of ‘digital gold’. All eyes would be on this space, that is for sure.

BTC/USD (as of Jan 7, 2021, 9.55 a.m., GMT +8) - $36,878.03

FOLLOWME User Sentiment (as of Jan 7, 2020 at 9.55 a.m.)

BTC/USD

Short – 77.70%

Long – 22.30%