Bitcoin showed signs of life on February 3 as largest altcoin Ether made good on its bull run and beat all-time highs.
5% gains as MicroStrategy buys $10 million of BTC
While modest compared to previous volatility, Bitcoin’s uptick buoyed sentiment among traders who had waited patiently for the market to decide short-term direction.
Previously, BTC/USD had spent two weeks in consolidation with only brief circumstantial moves bucking the overall trend. With $35,000 support now seeming in place, expectations focused on a retest of levels near all-time highs of $42,000.
“If we do hold above $35,000, I do not assume that $38,000 is going to be heavy resistance and we continue towards that $40,500 critical resistance level and we can continue grinding,” Michaël van de Poppe summarized in his latest daily YouTube update.
Reiterating his existing theory about the short-term potential of the market, van de Poppe added that a failure to hold $35,000 would result in a test of $32,000, with a likely further dip to $30,000 support.
“Interestingly, Bitcoin is crawling up while the dollar is showing strength,” he noted, eyeing a reversal of a tradition which normally sees BTC/USD suppressed during growth periods in the U.S. dollar currency index (DXY).
The price action further coincided with fresh buying activity from institutions, with MicroStrategy adding another 295 BTC to its treasury on Tuesday. Scott Minerd, chief investment officer of asset manager Guggenheim, revised his longer-term Bitcoin price target up to $600,000.
Examining the flipside of the investment—institutions selling their coins for profit at some point in the future—trader Scott Melker highlighted MicroStrategy CEO Michael Saylor as a potential lone wolf in staying a lifelong hodler.
“And this locked Bitcoin that’s held on the balance sheets of companies and in the hands of retail that aren’t sold will determine the baseline price of Bitcoin after it comes down from its cycle all-time high,” he wrote in a post this week.
“So as cool as Michael Saylor is for buying a lot of Bitcoin and publicly announcing he will never sell, he is probably a hero that most buyers big or small will never relate to.”
Ether peaks prior to futures launch
Beyond Bitcoin, it was all about Ether on the day as ETH/USD rushed through its previous record high to hit $1,573 on 20% weekly gains.
Coming in the last few days before the start of ETH futures by CME Group, investment appetite was clear throughout the week as Ether prepared to join Bitcoin on the world derivatives stage.
Fellow asset manager Grayscale resumed buying for its Ethereum Trust on Tuesday, adding 24,796 ETH after a break which began in early December.
Van de Poppe forecast the largest altcoin hitting $10,000 during its current market cycle.