Bitcoin ($BTC) is currently holding above $95,000, and its imminent breakout of a short-term triangle could be up or down. Meanwhile, Michael Saylor’s MicroStrategy has just bought another $1.5 billion BTC, and the U.S. Spot Bitcoin ETFs also chipped in on Monday with $ 4.22 billion in BTC. MicroStrategy buys again With its latest acquisition of 15,400 BTC, worth $1.5 billion , MicroStrategy just continues to eat up a scant supply of $BTC from the market. The MicroStrategy holdings now total 402,100 BTC, bought at a price of $58,263 per Bitcoin. U.S. Spot Bitcoin ETFs further decrease a scant supply of $BTC Fresh on the heels of the MicroStrategy announcement, the U.S. Spot Bitcoin ETFs bought another 4.34K BTC on Monday - further decreasing the scarce supply. As per usual, the Blackrock IBIT ETF bought the lion’s share of this with a 3.47K BTC purchase. U.S. government selling $2 billion in BTC? Amid all this strong buying, the U.S. government moved almost $2 billion in $BTC to the Coinbase Prime exchange on Monday. It’s not clear whether the objective is to sell the $BTC, but this kind of wallet movement could have been done with this aim in mind. Since the U.S. government BTC movement became apparent, it did spark a slight downward movement in the Bitcoin price, but with MicroStrategy et al., buying a similar amount, there isn’t necessarily going to be a huge dip if this indeed does become a sale. $BTC breakout approaching on short-term time frame Source: TradingView The 4-hour chart for $BTC shows that the price is still traversing inside a triangle . This means lower highs, but higher lows. Therefore, a decision moment is approaching. The tussle between the bulls and the bears has to end with one of them the victor, and as it stands, it is still not certain which it will be. In the bull’s favour, the general trend is still up, and momentum indicators are coming down in preparation for the next swing to the upside. Also, as mentioned above, there is plenty of strong buying still taking place. For the bears, there is the slow decline from the all-time high, which could end up in a full-blown roll over for Bitcoin. In addition, the price is currently approaching the bottom of the triangle, and could break to the downside. All this considered, it is probably best to watch the price closely over these next few hours and days. If the price does fall down through the bottom of the triangle, there are the 0.618 and 0.786 fibonacci levels which could act as support, and the horizontal support level at $91,700. Whereas a dip below $90,800 would result in a lower low, and a possible descent to much lower levels. Momentum indicators turning bearish on weekly time frame Source: TradingView The weekly chart for $BTC shows a clear picture. It could be that the price is going to come back down to retest the ascending trendline from the 2021 bull market. The two indicators below the chart could foretell this scenario. The Stochastic RSI is currently curving downwards, indicating that upside momentum is starting to disappear. Also, the Relative Strength Index at the bottom of the chart is also posturing to the downside. In addition, this indicator is displaying bearish divergence. Both of these indicators could still begin to reverse back up, especially if strong buying is maintained for what is becoming an ever-decreasing supply of BTC. However, these indicators are key, so they will need to be watched very closely. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
