<

Bitcoin goes mainstream via corporate adoption, is that good for Bitcoin price?

Following yesterday’s surge to about $11,500, Bitcoin price has retraced slightly and trades at about $11,350. Most altcoins have also calmed after charting two consecutive days of gains. At press time, BTC is trading around $11,357.

Bitcoin price steady above $11,000

Bitcoin initiated an impressive leg up. Bitcoin went from about $10,900 to its new monthly high of nearly $11,500 with just a few hourly candles. After registering such notable gains in a relatively short period, BTC has retraced slightly and calmed. The asset currently sits at about $11,350.

From a technical perspective, Bitcoin now faces the first resistance at around $11,400 – $11,500. Should the cryptocurrency overcomes it, BTC could head towards $11,800, followed by $12,000.

In case of a price breakdown, Bitcoin could rely on the support lines at $11,200, $11,000, and $10,800.

Despite the price increase, though, the data analytics company Santiment warns that the community could be expecting a retrace soon. The keyword “short” has hit a 2-month high on the social media discourse channels Santiment follows, which has historically been a great identifier of market polarization.

is-that-good-for-bitcoin-price

Bitcoin goes mainstream via corporate adoption

Bitcoin’s place within the world has long been debated, with some believing that it is best suited to be a store of value, while others laud its ability to be a payment rail. At the moment, its main utility appears to be its ability to act as a reserve asset. Multiple major companies have been buying massive quantities of BTC throughout the past few months.

MicroStrategy was one of the first non-crypto focused companies to announce that they are converting all of their reserve USD into Bitcoin in order to escape imminent inflation. Square quickly followed in its footsteps, putting the total number of public companies holding Bitcoin at 11 – with all the others being crypto-focused companies.

Crypto analyst NFT Maximalist explained in a recent tweet that the fact that eleven public companies own 3% of the BTC supply indicates that a sell-side liquidity crisis could be on the horizon. This may send Bitcoin’s price surging significantly higher in the mid-term.

He stated:

“11 companies hold almost 3% of total BTC supply and I don’t even know half of those companies. Sell-side liquidity crisis soon.”

is-that-good-for-bitcoin-price

As more companies begin turning to unorthodox means to protect their capital from imminent inflation, it may gobble away at the already limited supply of circulating spot BTC available for purchase.

This could create a sell-side liquidity crisis that drives Bitcoin price significantly higher.

BTC is on the cusp of flashing a major buy signal

Peter Brandt, CEO of trading firm Factor Trading Co. is sharing a chart that shows the crypto king is poised to break out of a symmetrical triangle dating back to 2017. BTC now needs to close out the week above the $11,100 mark for confirmation.

Brandt cites large Bitcoin purchases from payments giant Square and business intelligence company MicroStrategy as significant fundamental factors driving Bitcoin’s price. Collectively, the two companies have bought $500 million worth of Bitcoin within the last month.

He stated:

“It is a major development that a global corporation is now putting BTC onto its balance sheet. The weekly and daily charts a poised to flash a big buy signal.”

is-that-good-for-bitcoin-price2

Back in January, Brandt said Bitcoin could surpass $100,000 in its current long-term cycle. However, as the COVID-19 pandemic continues to hit financial markets, the veteran technical trader revealed last month that he exited the crypto market and moved his assets to the US dollar.

You can see the Bitcoin price here.

Read more:

Join us on Telegram

Follow us on Twitter

Follow us on Facebook

 

You might also like

LATEST NEWS

LASTEST NEWS