It would appear that Bitcoin prices may be set for another bull run soon. Not only has the price been able to find support at the 43500 price support, but a significant player in the market has snapped up more Bitcoin at the lower prices.
In a textbook accumulation strategy, MicroStrategy has announced a purchase of $10million worth of Bitcoin in a May 18 filing made to the US Securities and Exchange Commission. According to the filing, 229 Bitcoins were purchased in cash for $10 million at an average price of $43,663 per coin.
The latest acquisition brings the average price of purchase for MicroStrategy’s 92,079 bitcoins down to $24,450 per BTC. Recall that MicroStrategy was one of the institutional firms that started off the recovery in Bitcoin prices in Q3 2020 with a major purchase. Bitcoin price is up 2.9% this Tuesday on the news.
Technical Levels to Watch
Tuesday’s bounce off the 43.569 support level lacks conviction at the moment. It stopped just shy of the 46,203 initial target. The bulls need to generate sufficient buying momentum to cross this resistance. If this is successful, 47,500 becomes the next target (4 March and 23 April lows). Above this level, 50,000 is the barrier that needs to give way for BTC/USD to pursue upside targets at 52,670, 55,670, and 58,360.
On the flip side, a further decline below 43,569 allows the bears to resume their corrective push towards 41,000, after which 37,455 and 35,297 become additional targets to the south.