Bitcoin price is not motivated enough to surpass $40,000 despite MicroStrategy pledges to buy more BTC
As AZCoin News reported, rumors that Amazon will accept BTC payments sparked a wave of bullish enthusiasm in the crypto market earlier in the week. But, after that, this sentiment started to wane as BTC bulls faced stiff resistance at $40,000. Bitcoin price is changing hands at $40,154, still recorded a 22% increase in the past seven days.
BTC/USD 4-hour chart | Source: TradingView
Where Bitcoin price may head after it failed to flip the $40,000 level to support?
BTC managed to fend off multiple attempts to break above $40,000 to support and defend the area as Bitcoin’s price action stagnated and fueled fears that the price could drop back to the end of the range. from $35,000 to $30,000 of the week.
Business intelligence company MicroStrategy will continue investing in its “digital asset strategy,” the company’s CEO Michael Saylor said in its Q2 earnings announcement. So, the mobile software firm has pledged to buy more Bitcoin despite reporting impairment losses of $424.8 million in Q2.
Saylor noted that the Tysons Corner, Va.-based company’s latest funding had allowed the firm to increase its digital holdings to more than 105,000 BTC.
“We continue to be pleased by the results of the implementation of our digital asset strategy. Our latest capital raise allowed us to expand our digital holdings, which now exceed 105,000 bitcoins. Going forward, we intend to continue to deploy additional capital into our digital asset strategy,” the report stated.
MicroStrategy Announces Second Quarter 2021 Financial Results.
— Michael Saylor (@michael_saylor) July 29, 2021
However, before this news, the price of BTC has not improved. Bitcoin traded sideways as buyers appeared to be exhausted near the $40,000 resistance level. The cryptocurrency is up about 22% over the past week, a gain driven by improving sentiment and short covering.
Bitcoin whales remain greedy while others are fearful. According to Santiment, whales have accumulated 130,000 BTC in the past four weeks as the price of Bitcoin traded below $35,000.
“Bitcoin’s whales have been staying busy, and addresses holding between 100 and 10,000 BTC just reached a combined All-Time-High 9.19m coins held. They have added 170,000 more BTC since May 22nd, and a staggering 130,000 BTC in the past 4 weeks alone,” Santiment reported.
With such heavy accumulation being seen in the lower $30,000 to $35,000 range, some analysts have suggested that whales may attempt to orchestrate another pullback in price so that they can continue to accumulate.
Meanwhile, interest rising, optimism in sight? While prices made new bottoms, the open interest continued to ride bullish patterns with higher bottoms.
“See that at the moment of the first bear trap, the open interest fell, and even after the price continued to fall the interest rose again, continuing its bullish pattern since May. Now both meet and cross in the same direction, the marker point for resumption of optimism? Polarity change successfully executed?”, CryptoQuant added.
Now, price levels to consider are the $40,000 psychological price level, and $44,000, which is the next resistance level BTC saw when Tesla announced they would accept BTC as payment back in February.
BTC story aside, today Ether price has excelled with a gain of nearly 7% over the last 24 hours, surpassing $2,400 at press time. This is probably because today is Ethereum celebrates its sixth anniversary. Joe Lubin, a co-founder of Ethereum and the CEO of ConsenSys, says the convergence between the public mainnet and corporate versions of the technology is now closer than ever.
Ethereum and some altcoins have rebounded, as average returns in the predictive 30-day MVRV metric have turned positive for ETH, GRT, UNI, MKR, MATIC, etc.
Elsewhere, Newegg announced it will be accepting Litecoin as a form of payment for customers who use BitPay on their platform. Senior brand manager Andrew Choi, the integration of Litecoin is about making the customer experience more flexible and convenient. After that news, LTC has up to 18% gains in the past seven days and is currently trading at $144 at time of writing.
The overall cryptocurrency market cap now stands at $1.59 trillion, a 3% increase in the last 24 hours. Meanwhile, Bitcoin Dominance is 47.5%.
- Elon Musk Confirmed That Tesla Holds Close To $1.47 Billion Worth Of Bitcoin, Around 42,000 BTC
- Bitcoin Price Stables Around $40,000, Is This The Start Of A New Bull-Run Cycle?