Bitcoin price bounced from the $10,000 level and gained over 10% in the course of a couple of weeks. Besides the technical argument that the round number proves to be a strong support, Bitcoin price benefited from a boost of confidence from Microstrategy.
The American company revealed in the past that it invested $250 million dollars in Bitcoin. It represents one of the largest (and official) bets at the current Bitcoin valuation – a bold move that inspired many retail traders.
Bitcoin has long suffered from the lack of implication from institutional investors. Here, we name defined benefit pension plans, but especially endowments, as they are more inclined towards alternative investments. Yet, until there is more clarity regarding regulation in the crypto space, there is difficult to see how institutional investors would pile in.
Microstrategy Reveals How It Bought Bitcoin
But Microstrategy did bet on Bitcoin. Moreover, it recently revealed how it bought and at what levels. Last month it revealed that it bought over 21,000 Bitcoins via over 78,000 off-chain transactions.
For the small retail trader that owns one or two Bitcoins or not even that, the move is a boost of confidence. If such a company makes such a big bet and treats Bitcoin as a treasury reserve asset, then hodlers just have a strong reason to keep believing in future price appreciation.
Bitcoin Price Technical Analysis
Bitcoin bounced from $10,000 after forming a triple bottom. After it broke the previous bearish trend’s lower high, it kept forming higher highs and higher lows.
For as long as this trend remains in place, Bitcoin will have a hard time falling. Therefore, bulls would want to step in every time the Bitcoin price falls into the lower half of the channel, place a stop loss at the previous higher low, and target a 1:2 or 1:3 risk-reward ratio.