The Bitcoin price continues to show resilience, as super-bull and MicroStrategy CEO Michael Saylor commits to buying more.
The last trading week of April saw a marked reversal in the fortunes of Bitcoin (XBT/USD). After reaching an all-time of $64,900 on the 19th, the Bitcoin price had struggled under the threat of increasing regulation and higher taxation.
Reaching a low point of $47,044 on the 25th of April, some market commentators we quick to write off the prospects of the cryptocurrency leader.
Confidence is now fast returning to the digital asset. The week’s FOMC policy meeting quashed investor fears that the Central Bank may be adopting a more hawkish stance. Instead, Fed Chairman Powell told the market exactly what it wanted to hear.
Risk assets adopted a bid tone as the Central Bank signaled no immediate adjustment in the rate of asset purchases. Chair Powell also remains resolute in his belief that a recent uptick in inflation will prove to be fleeting. This saw the Bitcoin price quickly reclaim the psychological $50,000 level. The recovery has continued over the last three sessions, lifting Bitcoin to its current $58,300 valuation.
Saylor Steps In
Michael Saylor, the Microstrategy (MSTR) CEO and outspoken Bitcoin advocate, quickly reassured investors that institutional demand for Bitcoin is still strong.
Microstrategy has been steadily accumulating BTC as it diversifies its balance sheet away from traditional Fiat currency dependency.
The business intelligence firm holds 91,000 Bitcoin on its books. At the current Bitcoin price, the holding shows a valuation of $5.3 Billion. In last nights earnings call, Saylor reiterated the firm’s commitment to its treasury policy, saying:
“We will continue to acquire and hold additional bitcoin as we seek to create additional value for shareholders,”
BTC/USD Price Outlook
This recent break higher should see the $60,000 level tested in the coming sessions and quite possibly start a renewed run to all-time highs.
The 3-hour chart tells us the Bitcoin price is entering into overbought territory, with an RSI reading of 72.0. This could lead to a short-term consolidation pattern as the overbought conditions are worked off.
A pullback to $55,500, which marks the highs of the 17th and 28th of April, would provide support.
Bulls may look to establish long positions on a retreat to this area. Should the market fail to hold this number, there remains potential for a steeper decline.
The next level of support is offered by the upper end of a descending channel and April 24th High at $51,000, a break of which would invalidate the bullish outlook.