As a seasoned crypto investor with a keen interest in following market trends, I find the recent developments in Bitcoin quite intriguing. The nearly breaching of the $70,000 resistance due to the US CPI data report is a positive sign, indicating favorable economic factors that continue to defy geopolitical tensions. MicroStrategy’s announcement of raising an additional $500 million using a convertible senior note offering to buy more Bitcoin further solidifies my belief in the digital currency’s potential.
The price of Bitcoin came very close to surpassing the $70,000 mark on Wednesday, fueled by the US Consumer Price Index (CPI) report’s impact. As per the Bureau of Labor Statistics (BLS), inflation remained unchanged in May. This suggests a promising economic trend bolstered by beneficial factors, despite ongoing geopolitical conflicts between Russia and Ukraine in Europe, and Israel and Hamas in West Asia.
MicroStrategy Explores $500M Via Convertible Note Offering
MicroStrategy, the corporation with the largest Bitcoin holdings, has put forward a proposal to raise $500 million through issuing convertible senior notes. The company’s statement revealed that this offering, which can accommodate an extra $75 million, intends to utilize these funds for two primary purposes: acquiring more Bitcoin and addressing general corporate needs.
MicroStrategy announced that they will offer and sell the notes only to institutional investors who are believed to meet the qualifications under Rule 144A of the Securities Act.
The business is persistently expanding its Bitcoin investments, currently holding approximately 214,400 BTC with a market value exceeding $14.5 billion. This substantial Bitcoin hoard was acquired at an average cost of around $7.54 billion.
According to Yahoo Finance, MicroStrategy Incorporated (MSTR) shares ended their trading on June 12 at a price of $1,603, marking a significant increase from their opening price of $680 at the start of the year.
As a researcher studying the cryptocurrency market, I’ve observed that although Bitcoin’s price had dipped by 0.11% at the moment of writing this report, an intriguing development was taking place in its trading volume. Specifically, within the past 24 hours, this volume surged by approximately 30%, reaching a significant level of $36 billion. The market capitalization of Bitcoin followed suit, remaining fairly stable and consistent with the current price at around $67,830.
Bitcoin Price Analysis: Nurturing New Bullish Outlook
Bitcoin reached a new peak of $70,000 following its bounce back from the support level at $66,000. However, this upward trend was short-lived as a correction ensued, providing an opportunity for bulls to accumulate more funds around $67,000. The sudden decline could be attributed to profit-taking and investor uncertainty regarding a successful breakthrough above the $70,000 threshold.
Using the 200-day Exponential Moving Average (EMA), depicted in purple on the graph, as a quick backup, buyers now have an opportunity to narrow the price difference and reach towards $70,000.
Based on the most recent reading from the Moving Average Convergence Divergence (MACD) indicator, there’s a strong indication of an upcoming bullish trend towards the end of this week. The blue MACD line’s position above the orange signal line adds credence to this forecast, instilling renewed optimism among traders.
Moving upward above the 20-day Exponential Moving Average (EMA), which is represented by the blue line and is near the opening price of the previous day, could potentially reinforce the bullish trend more firmly.
According to the Bitcoin price forecast conducted by the experienced analysts at CoinGape, there are several significant events to anticipate. Firstly, the surpassing of the $70,000 mark is a likely development. Following this achievement, overcoming the psychological barrier at $72,000 would be the next challenge. Conquering these resistance levels could trigger the beginning of the next bull market, potentially reaching $80,000 in the interim and surpassing $100,000 by the end of the year.
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2024-06-13 15:58