Bitcoin (BTC/USD) once more failed to break past the $40,000 price mark, despite MicroStrategy’s plan to sell $1billion worth of its shares to finance more Bitcoin acquisitions. MicroStrategy’s stock rose 6%, but the effect failed to rub off on Bitcoin as sellers kicked into full gear to reject another move above $40,000.
The company currently owns 92,079 Bitcoins, which translates to a current value of $3.6billion. The lower Bitcoin prices have led to reduced mining difficulty. This situation is allowing mining firms to invest more in infrastructure. Genesis Digital Assets is one company doing just that, ordering more than 10,000 mining machines from Chinese rig maker Canaan.
Technical Outlook for Bitcoin Prices
The resistance wall between 40580 and 42033, as identified on the daily chart, once more held firm, resulting in a pullback after Tuesday’s rejection. This sets BTC/USD back on the path towards 37455 as the immediate support level. Below this area, 35297 is additional support. After that, sellers would be eyeing a drop below 30208 for the price to cascade lower. 28,000 and 24,000 would then become new potential targets.
On the flip side, the breakout move from the wedge remains truncated at this point, and buyers would need a bounce at 37455 to renew the attempt to break above 40,000. If the price breaches the resistance wall between 40580 and 42033, we could see further extension towards 43569 or even 46203 in the short term. Additional upside targets at 48000 and 50000 are still a long way off at this point.