Bitcoin Price Analysis: Why is BTC Charging To $70,000?
Bitcoin Price Analysis: Bitcoin bulls are back on the offensive after news broke out that MicroStrategy, the largest corporate holder of BTC has added more coins to its growing stack. Meanwhile, the entire market responded well, with price increases across the board.
Within a short period, the largest cryptocurrency is up 1.1% to $65,912 as CoinGecko data shows. The ripple effect of this move has seen Ethereum price tick up 1.2% to $3,580. Some altcoins are soaring more than others including Toncoin, Near Protocol, Fetch AI, and Injective.
If bulls keep up with the momentum, the crypto market could recoup the losses investors have endured since last week. The crypto market crashed after the Federal Reserve’s hawkish stance on interest rate cuts. In addition to revising potential cuts in 2024 to only one, the Fed did not mention when it’s likely to happen.
Some economists say that the rate cut could come in September while others are less optimistic, looking toward the end of the year in December.
MicroStrategy Purchases More BTC
In a post on X, the founder and chairman of MicroStrategy, Michael Saylor announced that the company had bought 11,931 BTC at an average cost of $786 million.
The Bitcoin was bought using proceeds of convertible notes in addition to “excess cash.” MicroStrategy announced an offer for convertible notes targeting qualified institutions last week.
Saylor’s company has been buying and holding Bitcoin for years now. It currently holds 226,331 BTC on its balance sheet worth approximately $8.33 billion. The entire holding was purchased at an average cost of $36,798 per Bitcoin, implying that MicroStrategy has almost doubled its investment in the largest cryptocurrency.
Bitcoin Price Analysis: $70,000 Beckoning After MicroStrategy BTC Purchases
Bitcoin sits above the $65,000 mark as bulls flock to the market to reinforce their grip. The Relative Strength Index (RSI) is at 40 signaling a strengthening uptrend.
A daily close above that level is crucial for the continuation of the uptrend. With sentiment building due to MicroStrategy’s BTC purchases, a breakout to $70,000 is likely before the end of the week.
Slightly above $70,000, an inverse head and shoulders pattern is anticipated. If validated, Bitcoin price prediction reveals a potential 18% breakout to $84,000, achieving a historical milestone.
However, if declines continue below $65,000 two exponential moving averages (EMA), the 20-day and the 50-day threaten the recovery with a death cross pattern.
Such a move could destabilize the market further with support areas at $64,000 and $62,500 likely to be tested.
However, a trend reversal could eventually occur with with the start of Ethereum ETFs trading possibly on July 2. The crypto community views the approval of the second ETF and more so an ETH ETF as a significant step for the industry. Therefore, its impact on the price of Bitcoin and altcoins could be monumental.
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