Bitcoin Bulls Break $70,000 Mark; MicroStrategy Adds More to Holdings
Summary:
Bitcoin bulls have crossed the $70,000 mark, indicating sustained trader interest. Bitwise's CIO, Matt Hougan, stated that professional investors are eying Bitcoin ETFs. Data from Dune reveals that spot Bitcoin ETFs have garnered 4.06% of Bitcoin's existing supply. MicroStrategy recently acquired 12,000 Bitcoins at an average price of $68,477, bringing its total holdings to 205,000 Bitcoins. Meanwhile, the S&P 500 Index, U.S. Dollar Index (DXY), and other cryptocurrencies like Ether, BNB, XRP, Solana, Cardano, Dogecoin, and Shiba Inu also saw significant movement affecting their prices.
Bitcoin (BTC) advocates don't seem to be willing to relinquish control as they crossed the $70,000 plateau on March 11th, a clear indication of sustained trader interest. Matt Hougan, Chief Investment Officer at Bitwise, shared in a missive to investors that professional investors are on the lookout for Bitcoin exchange-traded funds (ETFs). Despite this fact, Bitcoin's ETF demand has remained uncompromised. As per Dune's data insights, spot Bitcoin ETFs have acquired 4.06% of Bitcoin's existing supply. If this buying trend persists, it's anticipated that the yearly Bitcoin cache of the ETFs could reach 8.65%. A glimpse at the latest cryptocurrency market performance reveals that MicroStrategy's founder and chair, Michael Saylor, has announced the company's acquisition of 12,000 Bitcoin at an average price tag of $68,477. This transaction utilized funds from a recently concluded $800 million convertible note offering. This latest procurement means that MicroStrategy now holds 205,000 Bitcoin, purchased at an average cost of $33,706 each. Traders must keep a close watch on Bitcoin ETF inflows - any prolonged slowdown might detract consumer sentiment and give rise to a market correction. But which support levels in Bitcoin and altcoins should be monitored? Let's look at the charts for insights.
The S&P 500 Index has been following an upward trajectory within an ascending channel pattern for several days now. However, the price took a downturn from the resistance line of the channel on March 8th, exhibiting signs that bears are holding their ground at that level. The upward moving averages signify that buyers have an upper hand. Yet, the negative feedback from the relative strength index (RSI) hints at a potential correction or consolidation in the near future. A bear dip beneath the channel may spur intense selling activity, and the index might plummet to the 50-day simple moving average (4,930). On the flip side, an increase from the current price level or the support line of the channel suggests positive market sentiment with traders buying every slight dip. For a sharp rally toward 5,350, bulls must thrust the price over the channel.
The U.S. Dollar Index (DXY) observed a downward slide beneath the 20-day EMA (103) on March 1, with bulls unsuccessful in their subsequent attempts to raise the price above it. This inability to surge over the 20-day EMA sparked a selling spree on March 6th. The following day, the sellers dragged the price under the 50-day SMA (103) and the neckline of the inverse head-and-shoulders pattern. The moving averages veer toward a bearish crossover, and the RSI is hovering around an oversold zone indicating that bears are dominating. The index may tumble to 102 and, eventually, possibly 101. Any rally attempts are expected to encounter selling resistance at the 20-day EMA. Ascending above the 20-day EMA may signal an easing of selling pressures, which could push the index to 105.
Bitcoin had been grappling to break over the $70,000 limit during the weekend but managed to do so on March 11th, demonstrating robust demand from bullish traders. The climbing moving averages and the overbought area RSI reveal that buyers are having the upper hand. The BTC/USDT pair may touch $76,000 and then $80,000, which could offer substantial resistance to bulls. Predicting the peak of an asset with strong momentum backing it is challenging. However, a break and close under the 20-day EMA ($62,443) will be the first symptom of weakness, indicating profit-booking by bulls, which could lead to a more profound pullback.
Other cryptocurrencies like Ether (ETH), BNB (BNB), XRP (XRP), Solana (SOL), Cardano (ADA), Dogecoin (DOGE), and Shiba Inu (SHIB) have also seen buying and selling action that may impact their prices.
Published At
3/11/2024 8:25:12 PM
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