The price of bitcoin has been quite stagnant lately, remaining between $ 10,200 and $ 11,200 in the macro trading range. Now the leading cryptocurrency is heading towards the upper end of this range and may soon surpass it.
If this level breaks in a sustainable move, it could indicate that a serious uptrend is imminent for BTC as it has moved around significant resistance levels for about a month.
The Relationship Between Bitcoin and the US Incentive Package
When we look at pure Bitcoin, we must evaluate the power of the cryptocurrency on both the technical and fundamental front together.
It can be said that this latest rise is due to Square’s announcement about the purchase of $ 50 million worth of BTC to be kept as a reserve asset.
This news has renewed investor sentiment in BTC and suggests that this could become a growing trend among other public companies looking to protect their capital against near-term inflation.
Now that the government is making progress on another incentive package for US citizens, this could spark a massive stock market rally, creating a frenetic wind for BTC, and outside forces could also increase Bitcoin’s bullish position.
An analyst believes that is the case.
Bitcoin Broke $ 11,000 While Building Technical Strength
At the time of writing, Bitcoin is trading at $ 11,383.
The power of the cryptocurrency is important. This surge was mainly due to Square’s decision to buy Bitcoin, which started a trend among other multi-billion dollar companies.
This could put serious pressure on Bitcoin if the stimulus package, potentially boosting traditional markets, fails to take effect.