Bitcoin price looking to break key resistance level after a sharp recovery from its monthly lows
- Bitcoin is recovering fast after it fell to its lowest price point in the past month.
- Price drop can be explained by the partial prohibition and strict regulation of mining in China.
- Investors regained the control of the market and strive to overcome the $34,000 level.
China fueling ongoing dip, as MicroStrategy fights to rebuild confidence
Bitcoin has been on the receiving end of the unrelenting push by Chinese authorities to get rid of cryptocurrency-related activities. While the ongoing onslaught of miners and trading engagements is one of the many attempts, this current ban is feared as the proposed Digital Yuan development is in its advanced stages. The ban may be a strategy to prevent competition with the government-backed coin.
While China continues to enforce its ban, Michael Saylor, the CEO of MicroStrategy Incorporated has continued to reiterate his trust in the potential of Bitcoin to the crypto industry players and institutional investors. The firm added to its Bitcoin reserve yesterday, with a purchase of 13,005 Bitcoin for approximately $489 million. This purchase brought the firm’s total BTC holdings to 105,085.
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Though MicroStrategy’s accumulation might not have moved the market, it can inspire other corporate buyers to bet big on the coin, a situation that may collectively influence the price of the asset.
The technicals suggests imminent uptrend
On the BTC-USD 4h chart, Bitcoin price is matching onward toward the $34,000 level, as showcased by the overpowering of the sell-offs by the buyers.
As shown by the RSI currently pegged at 48.82, the most recognized digital asset is trending upward from the oversold region, and investors can find this current level as a good pivot to accumulate more. Barring the impacts of unforeseen regulatory news, Bitcoin is billed to completely reverse its downtrend, with the likelihood of retesting its 7-day high price above $41,000 in the short term. The previous ATH at $64,000 remains the long-term target for market buyers.