Bitcoin price finally breached the key resistance of $52,000 to record a new weekly high of $54,366 after spending most of its past 4 weeks under $50K. Bitcoin’s market cap also breached $1 trillion again after the prolonged consolidation phase. The price spike comes just days after the US Senate approved the $1.9 trillion stimulus bill.
Bitcoin price and stock prices have risen in the wake of the previous stimulus relief offered by the government as the money flows into the stock market and inflation hedge such as Bitcoin.
The top cryptocurrency reached its new all-time high of $58330 in the first week of February and recorded a correction of nearly 20% shortly after. It has been under the consolidation phase ever since breaching $51k on a couple of occasions in between. Bitcoin has shown a new price pattern in 2021 where it has risen to a new ATH in the first week of the first two months followed by a 3-4 week-long consolidation period.
The consolidation phase seems to be getting longer with every higher price climb as evident from this month’s rise beginning in the second week instead of the first. Bitcoin has broken out of a month-long consolidation period is now eyeing the $70,000 price target in the short term.
Institutional Buying Continues
The institutions seem to be still highly bullish on Bitcoin as Coinbase outflows continued throughout the consolidation phase. MicroStrategy bought $1.1 billion worth of additional bitcoin using money raised from convertible notes offering along with two other cash purchases taking their total bitcoin investment to $2.16 billion.
More than $2.5 billion in Bitcoin has been transferred out of Coinbase in the past couple of weeks raising speculations over another big institution joining the bitcoin league. As Bitcoin continues to become a growing choice of institutions as a treasury hedging asset, the demand for a Bitcoin ETF is also rising in the US as the Canadian Bitcoin ETF Purpose has turned into a success.
More than $2.5b of #Bitcoin taken off Coinbase pro in the last 12 days.
Some big announcements soon… ????
— Bitcoin Archive ???????????? (@BTC_Archive) March 8, 2021