Bitcoin prices shot above $60,000 for the first time on Saturday, breaking new records in the process. The renewed surge in Bitcoin prices may not be unconnected with a new purchase of 262 Bitcoin tokens by MicroStrategy Inc on March 12 at a price of $57,146. This takes the company’s holdings to 91,326 Bitcoin, averaging a purchase price $24,214.
This huge purchase was enough to create demand on the BTCUSD that sent the pair soaring over the previous resistance at just over $58,000. Having achieved a high of $61788, the BCTUSD pair is now in retracement mode as some traders start to take profit from the recent move.
Technical Levels to Watch
The 4-hour chart shows that the retracement move is about to close in on the previous resistance that has now turned a support at 58,363. The rising trendline that connects recent short-term dips in price also intersects this support. A breakdown of this double support could let the bears on BTCUSD send prices towards the 52,672.43 support. Below this level, additional support is seen at 50,006 (psychological support) and 46,203.12.
On the other hand, if the retracement move finds support at 58,363.33, then we could have a retest of the record high, with 63,713.22 (141.4% Fibonacci extension) and 68729.79 (161.8% Fibonacci extension) serving as potential targets to the north.
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BTC/USD 4-hour Chart
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