Bitcoin Price Prediction: BTC’s weekend resurgence sees it eye down all-time highs
Daily Bitcoin BTC Technical Analysis
- BTC is currently trending in a symmetrical triangle pattern.
- The 20-day SMA protects the downside.
Prior to the weekend, BTC was on a bearish down surge. After failing at the $19,400 resistance line, the price had dropped to $18,000 support. However, the buyers managed to fight back over this weekend, bouncing up the price to $19,200. Let’s do technical analysis to see what’s going on.
Bitcoin trends within a symmetrical triangle
During this weekend’s resurgence, the price managed to flip over the 20-day SMA from resistance to support. This could be critical as it may inhibit future bearish correction attempts. As per the technical analysis, a bullish breakout above the triangle will retest the $19,375 and $19,720 resistance lines.
Image: BTC/USD daily
Upon seeing the daily chart, one can see the $19,375 line had previously thwarted the price twice, and the other line caused the premier cryptocurrency to plummet from $19,720 to $18,000. The MACD shows that market momentum is about to reverse from bearish to bullish, which is another positive sign.
MicroStrategy to boost their Bitcoin holdings
MicroStrategy, one of Bitcoin's largest corporate holders, plans to purchase more of the cryptocurrency soon. The company made headlines back in August when it announced that it had used part of its treasury reserve to buy bitcoin.
MicroStrategy bought over a whopping 40,000 BTC this year. The company’s CEO, Michael Saylor, also announced personal holdings of over 17,000 BTC back in October. According to a BeInCrypto report, the firm had revealed its plan to raise another $400 million to purchase more Bitcoin.
A few days ago, MicroStrategy noted that the sale of its convertible bonds has ended. As per an official statement, the firm generated an additional $150 million, taking the total raised to $650 million to acquire the flagship coin.
The company sold the convertible senior notes to institutional buyers at a rate of 0.75%. The notes are due to mature on December 15, 2025. MicroStrategy will offer the option to redeem them for cash, shares of MicroStrategy common stock, or a combination of the two.
Famous billionaire changes stance on Bitcoin
Ray Dalio, the founder of Bridgewater Associate, seems to have changed his negative stance regarding Bitcoin. In a recent Reddit Ask Me Anything session, the billionaire investor noted that cryptocurrencies have established themselves to be gold-like assets.
Dalio added that Bitcoin could serve as a “gold diversifier” and a store of value in the future. He further pointed out that most investors do not diversify their portfolios as they should. When comparing gold to Bitcoin, Dalio mentioned that he prefers assets that governments can hold and use to exchange value.
Addressing the recent excessive printing of money into the economy, Dalio said:
We are in a flood of money and credit that is lifting most asset prices and distributing wealth in a way that the system that we’ve come to believe is normal is unable to, and that is threatening to the value of our money and credit.
In November, Dalio had said that Bitcoin is not a good store of value because of its high volatility. However, he admitted that he might be missing something about the coin’s popularity and that there was room for correction. His recent comments come at a time when institutions are increasingly entering the cryptocurrency space. This could also be the main catalyst for the coin’s recent highs.
Key price levels to watch for BTC
As of now, the most crucial price level for the crypto market leader is the $19,375 line. This line coincides with the upper bound of the symmetrical triangle. If the price manages to break above this level, then the buyers will have enough momentum to break into all-time high levels. The downside needs to be protected by the 20-day SMA ($18,640).