The price of Bitcoin (BTC) is close to $ 11,000 again after a shaky start in October. Bitcoin price dropped below $ 10,500 last week, but on October 9, the price was quickly restored to $ 10,940.

In the short term, three factors could heighten the bullish sentiment and push the price above $ 11,000. Potential catalysts are Squares’ $ 50 million investment in bitcoin, a long-term ramp-up phase, and a recent increase in network activity.

On October 8, Square, a $ 81 billion payment group, announced a $ 50 million purchase of bitcoins, which is 1% of the company’s total assets.

In an official statement, Square’s CFO Amrita Ahuja stated that investing in bitcoin is a step towards financial inclusion. Ahuja sa:

“We believe that Bitcoin has the potential to become a more mainstream currency in the future. As acceptance grows, we intend to learn and act with discipline. For a company that creates products based on a more inclusive future, is this investment a step in that direction. ”
The $ 50 million investment for a square company is not a massive disbursement, but symbolizes the growing institutional demand for bitcoin as an investment and value creation tool.

The announcement came just a month after MicroStrategy, a company listed on the Nasdaq, bought $ 1 billion worth of bitcoin for $ 425 million.

Mohit Saruut, Partner at Betazo Capital, noted the positive movement in the bitcoin market despite negative developments in early October. This is without:

“It’s amazing how countless bad news hasn’t affected the price, but a $ 50 million purchase from SQ can only lead to a BTC breakout.”
Long build-up phase reached

Bitcoin was between $ 10,500 and $ 11,000 for most of the last month. As Cointelegraph reports, when BTC’s volatility drops sharply over a longer period, a significant price movement is likely to occur.

Bollinger Bands, an indicator that determines the price range of an asset based on volatility, has narrowed significantly. The 30-day volatility is now 20%, which was previously recorded only 7 times in the last five years.

Various technical indicators indicate that high volatility is a long-term opportunity. This also increases the likelihood of a build-up phase forming, given that BTC has protected the $ 10,500 support level.

BTC activity in the chain is growing

According to show analyst Cole Garner, the number of daily headlines has increased in recent weeks.

Garner attributed this to a possible increase in demand from investors in China following a positive report on cryptocurrency in state media.

In addition to the activity of the Bitcoin blockchain, the hash rate is constantly increasing to new heights. This indicates that the two miners are confident about the medium-term dynamics of BTC prices. Glassnode researchers also explain that:

“Bitcoin’s hash rate reaches a new ATH level and reaches 170 hits for the first time in history on a schedule (24-hour MA). This represents an increase of nearly 40% since the downgrade in May, significantly improving network security.

Source: CoinTelegraph

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