Bitcoin lost almost $1,000 on August 11, but $11,000 remains support and bulls have not yet lost control—what next?
Data from price trackers including CoinMarketCap painted a mixed picture for Bitcoin Tuesday as a fresh attempt to crack $12,000 saw a firm rejection.
After coming within $40 of those levels, a bearish streak took BTC/USD to lows of $11,160 by the end of the day.
A subsequent bounceback took momentum away from the sell-off, with press-time levels on Wednesday seeing $11,500 return.
MicroStrategy adopts Bitcoin with $250 million buy-in
The past 24 hours marked a curious trading session for Bitcoin. As Modern Consensus reported, “ranging” price action within a defined zone had once more become a feature, but the breakdown towards $11,000 ensured that it did not last.
As such, the $1,000 zone between $11,000 and $12,000 became Bitcoin’s new “range,” while it remains to be seen how much buyer support will avoid a further dip towards four figures.
At the same time, Monday saw unique bullish news for Bitcoin — MicroStrategy, the world’s biggest publicly-traded business intelligence firm, confirmed it had formally adopted the cryptocurrency as its treasury reserve asset.
As part of the move, MicroStrategy revealed it had purchased a total of 21,454 BTC at a cost of $250 million — $11,652 per coin.
Coming in late July, this could have catalyzed previous pushes to $12,000, but the official confirmation had no noticeable positive impact on Bitcoin prices.
Psychologically, however, it was a watershed moment, commentators said. In future, Bitcoin will receive more attention as an investment asset, fuelled by decreasing faith in fiat currency and a desire to preserve wealth in an asset with solid returns.
MicroStrategy’s own CEO, Michael Saylor, neatly summarized the company’s thinking in a press release on Tuesday.
“Bitcoin is digital gold – harder, stronger, faster, and smarter than any money that has preceded it,” he commented.
“We expect its value to accrete with advances in technology, expanding adoption, and the network effect that has fueled the rise of so many category killers in the modern era.”
A new “march to $12,000”
Reacting, celebrated macro investor Dan Tapeiro said Saylor’s decision was “hard to underestimate.”
“The language that he uses to describe the reason that he has made the allocation is flawless. Language that other corp CFOs will understand and now consider. Landmark,” he tweeted.
In the short term, however, BTC/USD has yet to fulfil the demands of traders. For Josh Rager, a return above $11,600 was necessary, something which subsequently did not occur.
Rager nonetheless endorsed the prognosis from popular Twitter account HornHairs, which claimed that higher levels were within Bitcoin’s sights.
“I think we march to $12k from here, untapped highs look ripe,” a fresh update concluded.