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Bitcoin is bullish today, posting an impressive 7% gain in the last 24 hours. BTC has broken above the $60,000 price level and is fast approaching $61,000. The last time BTC traded at a similar level was in November 2021.
One factor likely aiding Bitcoin’s rally is the recent acquisition of 3,000 BTC by MicroStrategy, a renowned Bitcoin whale.
Bitcoin’s rally comes two days after an announcement that Michael Saylor’s MicroStrategy bought an additional 3000 BTC. These tokens cost MicroStrategy $155 million and are valued at $51,813 each. Also, the purchase took place between February 15 and 25.
MicroStrategy has acquired an additional 3,000 BTC for ~$155 million at an average price of $51,813 per #bitcoin. As of 2/25/24, @MicroStrategy now hodls 193,000 $BTC acquired for ~$6.09 billion at an average price of $31,544 per bitcoin. $MSTR https://t.co/micudbYf3P
— Michael Saylor⚡️ (@saylor) February 26, 2024
MicroStrategy has acquired a total of 193,000 BTC for $6.09 billion and at an average price of $31,544 each. Also, MicroStrategy is recognized as the most significant Bitcoin holder among publicly traded companies. Another factor supporting Bitcoin’s price increase is the Bitcoin ETF trading volume surge.
According to senior ETF analyst Eric Balchunas, February 27 was another high-volume trading day for the nine approved ETFs. Over $2 billion was recorded as the trading volume on February 27, breaking the previous record of $1.3 billion.
Another intense volume day for the Nine with well over $2b traded. $IBIT broke its personal record again w/ $1.3b (for context that’s more than most large cap US stocks trade). I don’t know if this is a new normal or some kind of short-term algo/arb-related burst a la $HODL. pic.twitter.com/KkCkdQKe9r
— Eric Balchunas (@EricBalchunas) February 27, 2024
This marked the second consecutive day that the Bitcoin ETFs traded above the $ 2-billion mark, confirming rising investor interest. Notably, one of the Bitcoin ETFs, IBIT, recorded over 100,000 individual trades, rising from the 30 thousand to 60 thousand range.
This confirms that more investors are accumulating Bitcoin through direct purchases or ETFs. Meanwhile, the Founder of digital asset investment fund ARK36, Michael Morch, believes that institutional investment drives the rally.
In his words;
The anticipation swirling around the approval of spot Ether ETFs further underscores the maturation of the cryptocurrency market.
It recognises Ethereum’s role not just as a digital currency, but as an infrastructure backbone for a future where finance and technology merge more seamlessly.
Will Bitcoin Break Above $60,000 and Return to Its All-Time High?
BTC has entered a bullish phase, forming three consecutive green candles on the daily chart as the buyers sustain its uptrend. Also, BTC has flipped the $56,846 resistance level to support, leading to a further increase as it approaches the $61,055 resistance level.
Additionally, BTC is trading close to the upper band of the Donchian Channel (DC), confirming intense pressure from the buyers. This accumulation phase could lead to further increases for the asset in the coming days.
The Relative Strength Index (RSI) indicator is in the overbought region, rising to 86.25.
This is a strong buy signal, making BTC extremely bullish. Therefore, BTC will likely overcome the $61,055 resistance level in the coming days and rally to $62,000. If this happens, a return to its all-time high value in the coming weeks will likely occur.
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