Hi Colony,
In today’s cryptocurrency chart analysis, we will dive into Bitcoin fundamentals and technicals.
Solid Price and Moving Averages
On technical side, Bitcoin has been above the $10,000 mark for 92 days for the first time in its cycle. Plus, a daily 21 EMA, a 50 MA, a 100 MA, and a 200 MA are showing upper side potential.
BTC is making new higher highs and higher lows, both raising the price average. Eventually, BTC will have a correction and level out near last year’s peak of $14,000 which coincidences with Fibonacci’s Golden Ratio. That price finished last year’s bull run as BTC had 70% retracement.
BTC By the Hour
Hourly timeframes are showing a consolidation between $12,700-$13,200 that suggests BTC is ready for a big move. Sunday is going to be an important day to see a weekly candle close. Next time, we will discuss weekly head and shoulder’s pattern.
Big Buys and Sweet Talk
On the fundamental side, Microstrategy Inc. bought 38,250 BTC over the last two months totaling $425 million. This comes after its CEO, Michael Saylor, described Bitcoin as “digital gold” in a press release dated August 11th.
On September 14, 2020, MicroStrategy completed its acquisition of 16,796 additional bitcoins at an aggregate purchase price of $175 million. To date, we have purchased a total of 38,250 bitcoins at an aggregate purchase price of $425 million, inclusive of fees and expenses.
— Michael Saylor (@michael_saylor) September 15, 2020
Square, a financial services company led by Twitter’s co-founder and CEO Jack Dorsey, announced on October 8th that it purchased 4,709 Bitcoin for $50 million.
Additionally, some huge news come from Paypal: customers will be able to use cryptocurrencies to shop with any merchant in its large network starting in early 2021.
A Bull Run or Fake Out?
Is this the BTC bull run we have been hoping for since the end of 2017? Well, its peak of $14,000 hasn’t been seen since then so it is possible. Or, the good news could just be pumping it with positive. The only way to know for sure is to wait and see what happens by December.
