The recent development has been perceived by analysts as a very bullish factor for Bitcoin, as increased corporate adoption will significantly bolster the technical prospects of the cryptocurrency.
That said, BTC is on the brink of clearing a major resistance level that has been notorious for triggering heavy sell-offs. Failure to clear this level again could cause intense bearishness for the cryptocurrency in the coming days and weeks.
One analyst noted that the available supply is getting mopped up by large investors, most likely corporate entities looking to gain exposure in Bitcoin. He explains that this could catch suppliers “off-guard” and cause them to scramble to re-enter their positions, which would drive prices even higher.
Square is a multi-billion-dollar financial services company headed by Twitter founder Jack Dorsey and made the headlines yesterday after purchasing $50 million worth of Bitcoin to be held on their balance sheet as a reserve asset.
The news broke the industry and suggested that MicroStrategy’s anomalous approach to storing capital is becoming a trend. Although there is no evidence to corroborate this point, companies could be stocking up on BTC without necessarily having to announce it.
Key BTC Levels to Watch in the Near-Term
Bitcoin has been strongly bullish after breaking out of its previous wedge. The cryptocurrency has been met with heavy resistance at the $11,150 zone as expected. BTC could go into a modest retrace to the $10,900 area, where it could find some bullish support, which could help it conquer the $11,150 resistance and get closer to the YTD high.
In the meantime, a bearish Bitcoin is a far-off reality given the times.
Total market capital: $351.4 billion
Bitcoin market capital: $204 billion
Bitcoin dominance: 58%
Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results
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