Since bottoming at $9,800 last week, the BTCUSD pair has climbed higher and finally broke a key uptrend resistance at $11K. The coin is trading at $11,077 at the time of this article’s writing. Today’s rally means that BTC’s gained over $1000 and surged by over 10%. The world’s leading digital asset now faces intense resistance at the $11K level.
BTCUSD chart by Tradingview
If the coin can flip this resistance into support, it could surge higher. Traders are now eyeing the $11K -$11.2K as the potential region where Bitcoin could trend towards in the coming sessions.
On the downside, the asset could see a sharp decline if it fails to close above the $11K Barrier. In this scenario, the BTC price is projected toward the $10,650 support region.
MicroStrategy May have Inspired BTC’s Rally
Buyers stepped into the BTC market in droves today, seemingly responding to MicroStrategy purchasing over 16,000 coins on Sep. 14.
Michael Saylor, the CEO of the Nasdaq-listed investment firm, has asserted on numerous occasions that BTC is superior to cash as a long-term store of value.
MicroStategy made headlines last month after announcing that BTC would be the principal holding in its treasury reserve strategy. The company then acquired 21,454 BTC for a total of $250M.
The recent corporate buy is one of BTC’s most significant and legitimizing events in its 12-year history. Traders seemingly have taken note of the growing confidence in BTC as a legitimate investment vehicle.
Many crypto enthusiasts now predict that more portfolio managers will look to BTC as a hedge against inflation amid increasing global turmoil.
The influx of smart money into the crypto market may have given the BTC bulls confidence to buy the dip, leading to the current rally above $11K.
According to Dan Tapiero, a co-founder of DTAP Capital, institutional interest will only grow in the coming future. He stated:
“Massive wealth accumulation by the global elite. Institutions with over $1 billion endowment don’t need full gift tax deductibility. At some point, endowments will all need to own #GOLD and #btc in portfolios.”
ETH Price Could Rally Sharply
ETH hasn’t seen the sort of explosive uptick witnessed in BTC markets, but that could soon change. The altcoin is trading at $368 after facing increased selling pressure near $375.
That said, the bulls have successfully held the $350 and $355 levels of support, and the asset is now consolidating gains. As per the chart below, there is a double bottom pattern forming with support near $350. This key bottom suggests that the ETHUSD pair could see a sharp uptick in the near term.
ETHUSD chart by Tradingview