Just as a major US-based giant announced that it might further increase its already large exposure to bitcoin (BTC), popular crypto analyst Willy Woo shared three new charts, which all painted a bullish picture for the number one cryptocurrency.
According to a filing with the US Securities and Exchange Commission, MicroStrategy, the US-based major business intelligence company which back in August said it spent USD 250m on BTC, now added that its holdings “may increase beyond the USD 250 million” initial investment.
However, according to Washington Business Journal, it is unclear if further bitcoin purchases will be disclosed or if the latest filing serves as “a blanket disclosure” for the future.
MicroStrategy raised eyebrows in the crypto community and beyond when it first announced its intention to invest a large part of its cash holdings in bitcoin, effectively turning the company’s publicly traded stock into a play on the bitcoin price.
Since MicroStrategy’s initial investment was announced on August 11, however, the bitcoin price has dropped by around 10%. At the time of writing (10:34 UTC), BTC trades at USD 10,695 and is up by almost 3% in a day and 6.5% in a week. The price is down by 10% in a month, trimming its annual gains to almost 3%.
And while the software firm left the door open for an even larger bet on bitcoin, the well-known bitcoin analyst Willy Woo yesterday shared several bitcoin price models that all suggested a new bull run may be ahead for the cryptocurrency.
Writing in a Twitter thread, Woo said about his first model that a new “impulse of coins changing hands” has now completed, suggesting the next move for the bitcoin price is “likely upwards.”
“It’s very unlikely we’ll see any kind of a catastrophic dump in price from here,” the analyst added.
And despite warning that a “short term dump” could occur in bitcoin due to a weekend price gap on bitcoin futures on the CME exchange, Woo noted that “There’s a lot of bids in the spot orderbooks wanting to snap up the gap in the mid-high 9000s.”
I’m still cautious of another short term dump to fill the gap but so far it’s looking like it’s been front run for liquidity which is strongly bullish if we break resistance here. There’s a lot of bids in the spot orderbooks wanting to snap up the gap in the mid-high 9000s. pic.twitter.com/wXGQ3nzh8T
— Willy Woo (@woonomic) September 14, 2020
Additionally, the analyst also shared snapshots of both his Bitcoin Difficulty Ribbon model and the Bitcoin RVT Ratio model, which both showed a bullish outlook for bitcoin.
“Overall, I’m not expecting any mega dump, some chance of smaller whipsaws in the short timeframes, resistance is teetering,” Woo said, adding that now may be “not a bad time to get in if you’re a spot investor, given the longer range macro.
“There’s plenty of buy support below [USD 10,000], this is a buy the dip scenario,” the analyst said.
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