Author: Joshua Aldio, Business Associate
Disclaimer: Tokenomy does not provide any investment, financial, accounting, valuation, tax, legal or other professional advice. The opinions expressed in the article is the author’s personal view only. All decisions to buy, sell or trade any Digital Asset using the Services are made solely by you, and you are fully responsible for all such decisions.
Analysts expect Bitcoin price to retest the $45,000 price zone as support, after which traders anticipate a stronger move toward the resistance cluster at $54,000.
The mood across the cryptocurrency market has seen a notable improvement in the last week as prices are on the rise with Bitcoin (BTC) now trading near $48,000 while Ether (ETH) is attempting to hold above $3,400.
Data from Cointelegraph Markets Pro and TradingView shows that the price of Bitcoin has been oscillating around $48,000 since it broke out above $45,000 on March 28 and traders are now debating whether a bull run to $80,000 is on the cards.
MacroStrategy, a subsidiary of business intelligence firm MicroStrategy, said it will purchase Bitcoin after obtaining a multimillion dollar loan from Silvergate Bank.
In a Tuesday announcement, MicroStrategy said Silvergate issued a $205 million loan “secured by a certain Bitcoin held in MacroStrategy’s collateral account.” The firm’s subsidiary MacroStrategy will be using the proceeds of the loan to purchase Bitcoin (BTC), pay fees and interest related to the loan and handle general corporate expenses.
“The SEN Leverage loan gives us an opportunity to further our position as the leading public company investor in Bitcoin,” said MicroStrategy CEO Michael Saylor. “Using the capital from the loan, we’ve effectively turned our Bitcoin into productive collateral, which allows us to further execute against our business strategy.”
Launched in 2020, the Silvergate Exchange Network leverage service allows firms to secure BTC-collateralized loans for U.S. dollars. According to the bank, it had roughly more than $570 million in commitments as of Dec. 31.
Since making a $250-million BTC investment in August 2020, MicroStrategy now holds billions in the crypto asset following separate buys using the company’s cash on hand and proceeds of sales of convertible senior notes in private offerings to institutional buyers. With the BTC price at $47,806 at the time of publication, the firm’s 125,051 coins are worth roughly $6 billion.
Silvergate has helped provide capital to many companies involved in the crypto and blockchain industry. In October, the bank issued a $100-million credit line to crypto mining firm Marathon Digital to be used for funding its operations as well as expanding the number of BTC miners. Crypto.com announced a partnership with Silvergate in November aimed at allowing institutional clients to deposit and withdraw from the crypto exchange using U.S. dollars.
Bitcoin Technical Analysis
In daily time frame chart, we foresee that Bitcoin will be breaking multiple resistance which will confirm its bullish movement.
As we can see on the H1 chart, we foresee that Bitcoin’s price is forming a bullish flag pattern with a divergence from Stochastic Oscillator. This is a buying signal for traders who has a short term entry model.
Trading Call : Speculative Buy at $47,000, and short Take Profit at $50,000
Conservative Buy at $46,000 with the same TP level.
Traders and investors can utilize the Dual Currency Deposit in Tokenomy to place pending orders and earn some yield while waiting for the order to be executed.
DCD Reference : USDT/BTC at $47,000 or USDT/BTC at $46,000
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