CRYPTOS | 08/02/2023 01:52:19 GMT
MicroStrategy has expressed plans to sell up to $750M of its publicly traded equity and bonds, possibility to increase its Bitcoin holdings.
Michael Saylor continues to soak his firm in crypto, using the strategy of selling stock and pouring the proceeds into BTC.
Bitcoin price has moved from $29,200 to the $29,700 range after the announcement from MicroStrategy, a significant shift in the hourly timeframe.
Bitcoin (BTC) price has made a commendable move in the lower timeframe, rising despite the overall lack of volatility. With a little push from software developer firm MicroStrategy, the flagship crypto has reclaimed levels last seen around July 24.
Bitcoin price movements solidify in the lower timeframe
Bitcoin (BTC) price has finally edged north after recording fresh lows at the start of the week. The move draws the attention of traders and investors from the higher timeframes to the lower variants, where we can see some action.
Bitcoin’s latest spike, defined as a single quick motion of short duration, followed a revelation from MicroStrategy and its Chairman Michael Saylor in an SEC filing on the evening of August 1 during the US session about plans to increase its BTC holdings.
Bitcoin price reaction to the news
Bitcoin (BTC) price has responded to the news, breaking out and flipping the resistance levels due to the 50-, 100-, and 200-day Exponential Moving Averages (EMA) at $29,188, $29,234, and $29,342, respectively, into support. Further north, the flagship crypto has extended a neck high to tag the $29,789 barricade, levels last seen around June 24.
The Relative Strength Index (RSI) at 78 is concerning, but the price could still increase. This aligns with Welles Wilder’s interpretation of an overbought asset on the RSI indicator, marking that confirmation to a point when the RSI crosses below the 70 level to the downside.
Similarly, the histograms of the Awesome Oscillators are in the positive zone with large volumes, showing that bulls are leading the market.
[image source](https://www.fxstreet.com/cryptocurrencies/news)
BTC/USDT 1-hour timeframe
Conversely, if retail traders begin to cash in on the gains, though small, Bitcoin price could correct south, possibly falling back under the foothold of the three EMAs.
65.423 SRY