13 August 2020
As investors patiently await Bitcoin’s next breakthrough (or drop), news came from an unexpected place this week: Corporate America. On Tuesday, MicroStrategy (Nasdaq: MSTR), a $1.8B publicly-traded business intelligence company, made a massive $250 billion investment in Bitcoin as a part of its capital allocation strategy. According to the latest press release published by the business intelligence firm, it purchased a total of 21,454 BTC at an aggregate price of $250 million, including fees and commission.
The move came after the firm’s CEO and founder, Michael Saylor, announced his intention to explore purchasing Bitcoin, gold, or other alternative assets in an earnings call in July. He mentioned that his earnings from cash were fading and that the dollar was weakening. While it’s uncertain whether this could be the first in a string of corporations adopting cryptocurrency, it highlights that “big money” is not isolated solely with the financial institutions. Could the next big pump come from corporate America stocking up on Bitcoin?
Bitcoin (BTC): Volatility Slows Down
After a few weeks of volatility in Bitcoin trading, everything seems to have stabilized with BTC eclipsing $12,100 and then correcting shortly afterwards. This has led to a situation where BTC is trading in a channel where volume has tapered considerably.
This is not necessarily a negative signal, as the current sideways trend is teetering around its resistance level. Historically, this has been a bullish sign for BTC. However, we can expect a period of low volatility given that the moving averages in a state of neutrality and Bollinger bands expanding. As always, we recommend that you do your due diligence before making any investment decisions. However, it may be prudent to approach this current pricing situation with caution.
Chainlink (LINK): Reach
Once again, LINK made the news once again. And all signs point to crypto’s favorite four-letter word: DeFi. This has caused LINK to hit an all-time high of $17.86 – or 0.00153655 BTC.
With DeFi not slowing down, it’s hard to tell the heights that LINK will achieve. If you are planning to be a part of the Link Marines, you might want to wait for a deeper retracement. The level to watch is the 0.001195 level – the last resistance that was tested before it went to the moon. Yet, be wary of the 0.001315 level – it may act as a support, too. If the volume is not enough to keep it above this level, it might be best to wait for confirmation from the 0.001195 support level.
As always, be careful when trading. Even more these days – with private & corporate FOMO starting to creep in, and declining volatility. It’s important to look for support/resistance reversals and confirmations. Be diligent and always do your own research before making any investment decisions.