Last week, Square SQ -1.6%, surprise declared that they’d put 1 percent of the company’s assets to bitcoin. Ever since that time, bitcoin is up ~8 percent, currently trading around $11,400.
The announcement, albeit backward-looking, attracted the approval of this market as a possible signal that more corporations will follow Square’s lead, as Square seemingly followed MicroStrategy’s MSTR -1.1percent.
Furthermore, it was recently revealed that Stone Ridge Asset Management, an investment manager with $10 billion in assets under management, has built a $115 million position in bitcoin.
Stories like Square and Stone Ridge are very commonplace in 2020, which explains why bitcoin’s fundamentals have continued to shine bullish. For example, a Glassnode, blockchain analytics company, the quantity of bitcoin held on exchanges has continued to plummet because March while the percent of overall distribution dormant for more than 1 year is at all-time highs, now 63%.
Also read: CRYPTOCURRENCY MAIN USE TO BUY ILLEGAL STUFF IS MYTH
Additionally, bitcoin is still aided by holders seeking to take advantage of yield opportunities on the Ethereum network.
Per Rekt Capital, cryptocurrency analyst,” a week’s candle was a significant first technical measure that started bitcoin up to testing higher immunity levels.”
“Bitcoin has managed to stay within or over the $10.300 – $10.800 demand area for four consecutive months: a historical feat, further solidifying the psychological price level of ~$10.000.
Over the years, this same place (green box) had figured as a point of rejection, together with the only exception being the ninth rally of late 2017.
“Moving forward, bitcoin will attempt to breach a currently 3-month diagonal resistance (black line) as cost rises towards the greater $11,000s. Breaking this trend line would likely be a bullish price development”
With the November elections around the corner, market volatility is unlikely to disappear. But a growing number of big buyers such as Square, strong principles, and technical analysis charts continue to support a more bullish thesis.
Leave a comment