Bitcoin has once again shown its strength by rising after a period of consolidation, with increased buying activity pushing the price higher. This pattern of consolidation has trapped the bears at local bottoms in the past, and as the price breaks out heavily, these levels remain untouched. This indicates that Bitcoin may continue to demonstrate a similar price action, potentially surpassing key psychological barriers in the near future.
One of the driving factors behind Bitcoin’s price surge is institutional FOMO (Fear Of Missing Out). This trend began before the 2021 bull run when companies like MicroStrategy started accumulating BTC. With over 500,000 BTC in its holdings, MicroStrategy has become one of the largest whales in the crypto space. This move sparked FOMO among other institutions, leading to a significant increase in BTC holdings by publicly traded companies. According to Bitwise Asset Management, these companies now hold nearly 700,000 BTC, with MicroStrategy dominating with over 77% of the total.
The corporate accumulation of BTC has been on a steep upward trajectory since 2020, with MicroStrategy essentially becoming its own ETF. Founder Michael Saylor’s strategic accumulation of BTC has set a precedent for other corporations to follow suit. While the impact of this accumulation on BTC’s price may seem minimal, the base price established by these institutions could serve as a strong support level for Bitcoin in the future.
As Bitcoin’s price continues to show signs of recovery, market participants are becoming increasingly optimistic about its next move. The number of non-empty Bitcoin wallets has surged to 54.72 million, just below the all-time high of 54.74 million. This is a bullish signal for Bitcoin’s price action, with sentiments around the cryptocurrency shifting positively. The question on everyone’s mind now is whether Bitcoin can break through the $90,000 barrier and potentially reach $100,000 in the near future.
Technical indicators suggest that Bitcoin’s price could maintain a healthy ascending consolidation and potentially reach the upper resistance of the ascending triangle at $88,500. A breakout from this range could propel the price above $90,000, triggering a bullish rally that may push Bitcoin to new all-time highs. The weekly RSI is showing signs of strength, indicating a potential rise above the bearish trend. Overall, Bitcoin’s price trajectory looks promising, with the potential to reach new highs in the coming months.