The cryptocurrency market has been under consolidation since its peak on December 1 reaching a market capitalization of $590 billion. Since then, Bitcoin has lost around 10% of its value in what is considered to be a healthy pullback or correction of the uptrend.
Bitcoin bulls remain strong despite the recent sell-off as on-chain metrics turn in their favor and large institutional investors continue jumping into the market.
MicroStrategy announced on Friday that it raised around $650 million to buy Bitcoin. The company sold convertible senior notes at a rate of 0.75% due in 2025, stating:
MicroStrategy intends to invest the net proceeds from the sale of the notes in bitcoin in accordance with its Treasury Reserve Policy pending identification of working capital needs and other general corporate purposes
The company already shocked the cryptocurrency market earlier this year when it announced that most of its balance sheet will become Bitcoin.
Additionally, one of the most prominent Bitcoin haters, DBS Bank, announced the launch of a cryptocurrency exchange. Back in 2017, the bank condemned Bitcoin as a Ponzi scheme but has recently changed its stance and plans to launch an exchange supporting Bitcoin and other cryptocurrencies as well as fiat.
Bitcoin Price Analysis: Bulls back in control over short-term
After a mild sell-off, it seems that Bitcoin bulls are back in control and have defended a critical support level on the daily chart in the form of the 26-EMA. The current Bitcoin price at $18,375 is on the verge of climbing above the 12-EMA.
If Bitcoin can regain this last moving average as a support level, the odds of cracking $20,000 will greatly increase. Trading volume has been decreasing significantly which indicates a potential big move is underway.
On the 4-hour chart, bulls have finally pushed Bitcoin price above the 12-EMA and the 26-EMA which are now headed into a bullish cross. The 4-hour downtrend is still in place as bulls need to establish a higher low compared to $17,572 and a higher high above $18,639 to confirm an uptrend.
The MACD has turned bullish again indicating that the upwards movement is strong. Bulls need to hold the 26-EMA if they want to establish an uptrend within the next 24 hours. Otherwise, they will need to create a higher low and then eventually a higher high but will take longer.