The number of institutional investors introducing bitcoin continues to grow, and this appears to give some confidence in the bitcoin price. Just today, Square announced that it was buying 4,709 bitcoins (BTC) for $ 50 million.
Square isn’t the only big company doing this. MicroStrategy also had a hit recently with the announcement of a large bitcoin purchase.
These investor news events may indicate that a new cycle has begun, and major players are showing a keen interest in Bitcoin. However, will this also affect the short-term outlook, as Bitcoin remains below the crucial resistance of $ 11,000?
Bitcoin volatility is showing signs of boredom as the reading returns to levels seen in July. It was the post-halving period that caused a strong sideways movement in Bitcoin price for several weeks.
However, when bullish news hits the markets, there might be some short-term rally in Bitcoin’s price action. A breakout from the current triangle would be bullish for bitcoin, but investors should be cautious.
As Bitcoin’s trend line continued, there was a break. This resulted in Bitcoin price breaking through the crucial triangle. However, this is not the most important juncture to look at.
Investors should consider whether the previous support range between $ 11,100 and $ 11,300 can be breached. If this area breaks and turns in search of support, then further upside momentum will be guaranteed.
The breach will also show the cryptocurrencies strength, as they have been hit hard in recent weeks. The best climate for altcoins is the rise in Bitcoin, as it provides investors with a quiet market environment for trading digital currencies.
Ethereum (ETH) is a significant indicator of altcoins, which currently enjoys significant levels of support.
The ether chart shows signals of a potential bottom formation, but the critical green zone should be maintained for further movement.
If it breaks the $ 290-320 range for support, further plunge is likely to hit the 200-week moving average, which is currently around $ 220.
However, if Ether price maintains support in the $ 290-320 region, a potential range can be set between $ 300 and $ 450.
This is a bullish signal as the Ether price will consolidate at a higher level than the last two years.
The chart may look like a possible case of “price going up or down”, but it is surrounded by several critical levels that you should pay attention to.
Basically, if Bitcoin price breaks out of the $ 11100-11300 resistance zone, further upside can be expected against $ 12,000. This makes the $ 11,100-11,300 range crucial for continuation.
If this level cannot be broken and the trend line is lost, a potential new test of $ 10,000 will be shown on the map again.
Until then, only market participants can expect bullish sentiment in the short term.