BTC Bulls Eye a Return to $31,500 on MicroStrategy Momentum

Key Insights:

• On Tuesday, BTC enjoyed a bullish session, gaining 1.56% to end the day at $29,795.
• News of MicroStrategy planning to acquire more BTC provided price support.
• The near-term technical indicators turned bullish, signaling a return to $31,500.

On Tuesday, bitcoin (BTC) gained 1.56%. Reversing a 0.27% loss from Monday, BTC ended the day at $29,795. Significantly, BTC came up short of $30,000 for the eighth consecutive session.

Bitcoin (BTC) Price Action

Daily Chart

The Daily Chart showed BTC/USD sitting below the $30,750 – $31,250 resistance band. However, BTC held above the 50-day ($29,479) and 200-day ($27,083) EMAs, sending bullish near and longer-term price signals. Notably, the 50-day EMA pulled away from the 200-day EMA, supporting further gains.

Looking at the 14-Daily RSI, the 52.95 reading reflects bullish sentiment. The RSI signals a BTC run at the $30,750 – $31,250 resistance band. However, a fall through the 50-day EMA ($29,479) would bring sub-$28,000 and the $27,500 – $26,850 support band into view.

4-Hourly Chart

Looking at the 4-Hourly Chart, BTC remains below the $30,750 – $31,250 resistance band. However, BTC sits above the 50-day ($29,471) and 200-day ($29,664) EMAs, sending bullish near and longer-term price signals.

Significantly, the 50-day EMA narrowed to the 200-day EMA, supporting further gains. However, a fall through the 200-day ($29,664) and 50-day ($29,471) EMAs give the bears a run at sub-$28,000.

The 14-4H RSI reading of 65.45 indicates a bullish stance, with buying pressure outweighing selling pressure. Significantly, the RSI aligns with the 50-day EMA, signaling a near-term bearish trend reversal and a return to sub-$31,500.

MicroStrategy Plans to Acquire More BTC Provided Support

It was a busy Tuesday session, with SEC v Terraform Labs and SEC v Ripple chatter drawing interest.

However, MicroStrategy (MSTR)-related news delivered a bullish BTC session.

This week, MicroStrategy (MSTR) filed a request to sell up to $750 million in stock to acquire BTC. According to the quarterly report for the quarter ending June 30, 2023, MicroStrategy held 152,333 BTC. The anticipated increase in BTC holdings supported a Wednesday morning return to $30,000.

The news of Tron (TRX) founder Justin Sun acquiring CRV also provided market support.

However, uncertainty surrounding the ETF applications left $30,000 out of reach.

The Day Ahead

US economic indicators are on the light side this afternoon. ADP nonfarm employment change numbers could reignite bets on a September Fed rate hike.

However, beyond the economic calendar, investors should continue to monitor the crypto news wires. SEC v Ripple and SEC v Terraform Lab chatter, ETF updates, and Binance and Coinbase (COIN)-related news will move the dial.