• Thu. Jul 18th, 2024

An Analysis of the Bitcoin Price: Why Is the Price of Bitcoin Increasing to $70,000?

Phillip Bryant

ByPhillip Bryant

Jun 20, 2024
An Analysis of the Bitcoin Price: Why Is the Price of Bitcoin Increasing to $70,000?
  • MicroStrategy recently acquired an additional 11,931 BTC, significantly increasing its total holdings to an impressive 226,331 BTC.
  • Bitcoin surges past the $65,000 mark as investors set their sights on reaching $70,000.
  • If Ethereum ETFs commence trading on July 2, it is highly probable that they will initiate a more substantial upward movement.

Bitcoin enthusiasts are once again in a position of strength following the announcement that MicroStrategy, the leading corporate holder of BTC, has expanded its already substantial collection with the addition of more coins. Meanwhile, the entire market experienced a positive response, with prices rising across all sectors.

According to data from CoinGecko, the leading digital currency has surged by 1.1% in a brief span of time to reach $65,912. As a result of this action, the price of Ethereum has experienced a slight increase of 1.2%, reaching $3,580. Several alternative cryptocurrencies are experiencing significant price surges, surpassing others in the market. These include Toncoin, Near Protocol, Fetch AI, and Injective.

If the bulls maintain their current momentum, the cryptocurrency market may recover the losses that investors have experienced since last week. The cryptocurrency market experienced a significant decline following the Federal Reserve’s more aggressive position on reducing interest rates. Furthermore, apart from addressing the possibility of lowering cuts in 2024 to just one, the Federal Reserve needed to indicate the timing of this potential adjustment.

Certain economists believe a rate cut in September is possible, although others are less hopeful and believe it may occur closer to the end of the year in December.

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As Microstrategy Continues to Acquire Bitcoin

On X, Michael Saylor, the founder and chairman of MicroStrategy, made an announcement stating that the company had made a significant purchase.

MicroStrategy acquired 11,931 BTC at an average cost of $786 million. Bitcoin was purchased using funds from convertible notes and surplus cash. Last week, MicroStrategy announced an offer for convertible notes specifically aimed at qualified institutions.

Saylor’s company has been acquiring and retaining Bitcoin for an extended period. At present, the company’s balance sheet boasts a staggering 226,331 BTC, with an estimated value of around $8.33 billion. MicroStrategy has nearly doubled its investment in the most prominent cryptocurrency, as the entire holding was acquired at an average cost of $36,798 per Bitcoin.

Bitcoin Price Analysis: Potential for $70,000 as MicroStrategy Acquires More BTC

Bitcoin is currently trading above the $65,000 threshold as optimistic investors rush to the market to strengthen their control. The Relative Strength Index (RSI) stands at 40, indicating a growing uptrend.

A daily close above that level is absolutely essential for the uptrend to continue. Given the growing enthusiasm surrounding MicroStrategy’s acquisition of BTC, it is highly probable that we will witness a surge to $70,000 by the end of the week.

At a price just over $70,000, an inverse head-and-shoulders pattern is expected. If confirmed, the forecast for Bitcoin’s price suggests a possible 18% surge to reach $84,000, marking a significant milestone in its history.

On the other hand, should the declines persist and drop below $65,000, there is a potential concern for the recovery as the 20-day and 50-day exponential moving averages (EMA) may form a death cross pattern.

This action has the potential to create further instability in the market, as the support levels at $64,000 and $62,500 will likely be subject to testing.

Nevertheless, there is a possibility of a shift in the trend when Ethereum ETFs begin trading on July 2. The crypto community sees the authorization of the second ETF, particularly an ETH ETF, as a significant milestone for the industry. As a result, the effect on the price of Bitcoin and altcoins could be substantial.

Phillip Bryant

Phillip Bryant

Phillip Bryant, an esteemed writer in the financial field, imparts his extensive knowledge of currency markets to the readers of Main Crypto News. With a wealth of experience in international finance and a keen sense of market trends, Bryant offers timely and perceptive analysis of foreign exchange, keeping readers well-informed.

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