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Bitcoin jumps 2% on MicroStrategy buy with $100K BTC price in focus

Bitcoin jumps 2% on MicroStrategy buy with $100K BTC price in focus

CointimeCointime2024/12/03 16:39
By:Cointime

From cointelegraph by William Suberg

Bitcoin  BTC$94,120  gained at the Dec. 2 Wall Street open as a fresh round of buying by business intelligence firm MicroStrategy boosted markets.

Bitcoin jumps 2% on MicroStrategy buy with $100K BTC price in focus image 0 BTC/USD 15-minute chart. Source: Cointelegraph/TradingView

Bitcoin embraces latest MicroStrategy purchases

Data from  Cointelegraph Markets Pro  and  TradingView  tracked BTC price gains of more than $2,000 over two hourly candles.

In contrast to its  traditional reaction , BTC/USD made rapid progress after MicroStrategy revealed that it had spent  just under $1.5 billion  on boosting its BTC reserves.

The purchases were made in the week through Dec. 1, according to a Dec. 2 filing with the United States Securities and Exchange Commission, subsequently  confirmed  by CEO Michael Saylor.

Bitcoin jumps 2% on MicroStrategy buy with $100K BTC price in focus image 1 BTC/USD chart with MicroStrategy BTC purchases. Source: Lookonchain/X

Commenting, Ki Young Ju, founder and CEO of onchain analytics platform CryptoQuant, considered the scope of MicroStrategy’s overall  BTC buying streak .

“MSTR spent $13.5B on 149,900 BTC, with holdings up $21.5B in 30 days,” he  noted  in a post on X. 

“Bitcoin market can’t absorb tens of billions short-term without driving prices up, making returns nearly inevitable. If BTC breaks $100K, the gains could grow even more as it enters price discovery.”

Continuing, trading firm QCP Capital acknowledged Saylor’s upcoming pitch to the board of tech giant Microsoft scheduled for Dec. 10 — also an attempt to endear the firm to holding a Bitcoin treasury.

“Microsoft’s shareholders are scheduled to vote on a proposal to add BTC to its balance sheet on December 10. Could this be the catalyst BTC needs to break 100k before year end?” it queried in its latest bulletin to Telegram channel subscribers.

“Microsoft’s top shareholders such as Vanguard, BlackRock and Fidelity already have exposure to crypto with investments in MSTR, Coinbase and other crypto firms. One could argue that they already possess sufficient exposure. On the other hand if the proposal passes, it would be bullish not only for BTC but also for their other investments.”

Overbought RSI precedes BTC price rebound

BTC price action circled $96,000 at the time of writing, having previously begun retesting support below the $95,000 mark.

Related:  Biggest US dollar gains ever — 5 Things to know in Bitcoin this week

However, the outlook remained positive for traders, with the $100,000 landmark firmly on everyone’s mind.

“Nice corrective upwards consolidation here resetting RSI & other indicators,” popular trader Roman  told  X followers in his latest short-timeframe BTC price analysis. 

“We’re also seeing bullish divergences form while building volatility for higher. It’s a matter of time before 100k breaks!”

Bitcoin jumps 2% on MicroStrategy buy with $100K BTC price in focus image 2 BTC/USD 1-hour chart with RSI data. Source: Cointelegraph/TradingView

Roman referred to the  relative strength index (RSI)  indicator, which on hourly timeframes almost dipped below the key “oversold” level of 30 on the day.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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