Bitcoin Price Forecast: $100K breakout or drop to $90K ahead of Microsoft’s BTC investment vote?
Bitcoin price today: $95,300
- Bitcoin price retraces to $95,000 on Monday after recovering from last week’s pullback.
- MicroStrategy co-founder Michael Saylor explained a strategic approach to Bitcoin on Sunday, highlighting its significance as the next technological wave that Microsoft must address.
- Bitcoin US spot ETF recorded a mild outflow of $136.5 million last week, while stablecoin reserves on Binance reached a new all-time high.
Bitcoin (BTC) trades slightly lower and hovers below $95,500 on Monday after last week’s minor correction. MicroStrategy co-founder Michael Saylor emphasized on Sunday the strategic importance of Bitcoin, describing it as a pivotal technological wave that companies like Microsoft must embrace.
Traders should be cautious as Bitcoin Spot Exchange Traded Funds (ETFs) recorded a mild outflow of over $136 million last week. Still, some optimism could be seen for Bitcoin as stablecoin reserves on Binance reach a new all-time high.
Bitcoin expects volatility ahead of Microsoft shareholders’ December 10 vote on BTC proposal
Bitcoin price corrected with a slight decline of 0.73% last week, making a low of $90,791 in the first half but recovering during the second half to close at $97,185. As of this week, Bitcoin could recover its recent decline and rally towards its $100K mark, driven by Saylor’s BTC investment strategy presentation to Microsoft.
On Sunday, the co-founder of MicroStrategy, a company that provides business intelligence, mobile software, and cloud-based services, made the point during a pitch to Microsoft’s board on why the tech giant should buy Bitcoin.
“Microsoft can’t afford to miss the next technology wave, and Bitcoin is that wave,” Saylor said.
Moreover, QCP’s Monday report says, “Microsoft’s shareholders are scheduled to vote on a proposal to add BTC to its balance sheet on December 10. Could this be the catalyst BTC needs to break 100k before year end?”
The report continued, “Microsoft’s top shareholders such as Vanguard, BlackRock and Fidelity already have exposure to crypto with investments in MSTR, Coinbase and other crypto firms. One could argue that they already possess sufficient exposure. On the other hand if the proposal passes, it would be bullish not only for BTC but also for their other investments.”
Looking down into Bitcoin’s institutional flows indicates a mild fall in demand last week. According to Coinglass ETF data, US spot Bitcoin ETFs experienced a total net outflow of $136.5 million last week, compared to a $3.34 billion inflow the previous week. If this outflow trend persists or accelerates, Bitcoin could decline further in the coming days.
Total Bitcoin Spot ETF Net Inflow chart. Source: Coinglass
Despite a slight fall in institutional demand, CryptoQuant Stablecoin Reserves (ERC-20) data indicates a bullish outlook for Bitcoin and the overall crypto market. The data shows it hit an all-time high of around $28 billion on Monday on Binance. As the largest crypto exchange, Binance serves as a liquidity hub, attracting traders and institutions for stablecoin transactions, storage and trading. Rising reserves indicate renewed confidence, increased trading activity, and staking.
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All Stablecoin (ERC20) exchange reserve chart. Source: CryptoQuant
Bitcoin Price Forecast: Rise to $100K or fall to $90K?
Bitcoin price experienced a correction last week, dropping to $90,791 before recovering to $97,000 by Friday and consolidating during the weekend. As of Monday, it trades slightly below $95,500.
If BTC faces a pullback, it could extend the correction to retest its $90,000 support level.
The Relative Strength Index (RSI) on the daily chart reads at 61, rejected for its overbought level of 70 and points downwards, indicating a weak bullish momentum. Moreover, the Moving Average Convergence Divergence (MACD) indicator also showed a bearish crossover on November 26, signaling sell signals. It shows rising red histogram bars below the neutral line zero, also suggesting that Bitcoin’s price could experience downward momentum.
BTC/USDT daily chart
However, If BTC continues its upward momentum, it could rally to reach its all-time high (ATH) level of $99,588.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Author
Manish Chhetri
FXStreet
Manish Chhetri is a crypto specialist with over four years of experience in the cryptocurrency industry.
