Bitcoin surged as high as $39,800 after Elon Musk said Tesla would resume transactions with the cryptocurrency when mining is done with more clean energy. At the press of time, Bitcoin pulled back and is consolidating at around $39,000 mark.
Software company MicroStrategy, whose CEO Michael Saylor has become a vocal Bitcoin evangelist, last week boosted a junk-bond offering for the purposes of buying BTC to $500 million. To be concrete, there will be 14,000 BTC will be bought tonight.
SSR indicator, defining as the ratio between the supply of BTC and that of stablecoins, hits the historical low, which means the current stablecoin supply has greater purchasing power to buy more BTC.
Now the Crypto Fear & Greed Index values 28 which also shows that the sentiment of the market is still in Fear. Retail investors are selling during this time, however, institutional investors are buying the dips.
Bitcoin Technical Analysis
From the 4H chart, moving average shows a bullish signal, BTC price breaks above and finds support at MA5. MACD forms a golden cross and the histogram is also positive. However, the RSI slightly pulls back, indicating a correction may occur.
From the 1D chart, BTC is trying to jump above Bollinger band’s upper band, which is also a strong resistance in May. If BTC hits $40,500, it will test the support level ($48,000) in past 3 months. Both MACD and the Stochastic indicators signal a bullish run.
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