Bitcoin prices (BTC/USD) took a downturn today as another round of selling hit the cryptocurrency market. However, today’s selling round was relatively muted when compared to the market capitulation of May 23.
Bitcoin prices have bounced off the support at 37,455 after it emerged that another institutional entity had taken advantage of cheap prices to acquire more bitcoin.
Ark Investment is said to have announced a purchase of $20million worth of bitcoin. The purchase, which was filed with the SEC, adds to their bitcoin exposure, already made through strategic holdings in the portfolios of hedge funds MicroStrategy and Grayscale Bitcoin Trust Fund.
Ark Investment continues to maintain a year end 5-digit price outlook for Bitcoin, and has a long-term price target of $500,000 for the BTC/USD. In the past 24 hours, a significant amount of USDC and other stablecoins have been mined, pushing up hopes that a major bullish play could be on its way.
BTC/USD is down 2.65% as of the time of writing.
Technical Outlook for BTC/USD
There is a strong bounce off the 37455 support following the intraday decline. A bounce off this support allows the bulls to make a recovery attempt towards the price wall at 40,500/42,000. Only a breakout above this critical price resistance enables bitcoin prices to recover towards 43570 initially, before 46,200, 47,500, and 50,000, in that order.
On the other hand, a drop below the 37,455 support allows for a further pullback towards 35,300, with 30,208 serving as a major downside barrier that prevents a price collapse towards 25,000 if it holds firm.