• Bitcoin price’s immediate support at $51,335 is under threat as the king of cryptocurrency leans south.
  • BTC could slide 7% to test the $48,000 psychological level before the next leg up.
  • A decisive close above the $52,985 range high would invalidate the bearish thesis.

Bitcoin (BTC) price has managed to climb a commendable distance since October, with the move benefitting MicroStrategy the most, among other investors. The company, having demonstrated strong support for BTC through successive purchases, could soon merit S&P 500 inclusion as it steadily checks the boxes for listing criteria. 

Also Read: Bitcoin Price Prediction: $160 million long positions liquidated as BTC slips 2%

Bitcoin, altcoins, stablecoins FAQs

What is Bitcoin?

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.

What are altcoins?

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.

What are stablecoins?

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.

What is Bitcoin Dominance?

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.

Bitcoin could position MicroStrategy for S&P 500 inclusion consideration

Boasting around 190,000 BTC tokens worth almost $10 billion, business intelligence firm MicroStrategy now records a market capitalization of $12 billion. It comes after the firm made a big bet on the giant crypto, BTC, with the boldness almost earning the company a place on the American stock market’s most important index, the S&P 500.

The threshold for listing on the S&P 500, the list of America’s largest 500 publicly-traded firms, is possession of a market capitalization no lower than $15.8 billion. With such a high bar, it is not easy for a company to make it to this selection criterion. Nevertheless, MicroStrategy is progressively recording steady growth with its Bitcoin investments, catapulting itself toward the threshold with every purchase.

Besides another voluminous purchase, another factor that could propel MicroStrategy closer to the S&P 500 threshold is a show of strength by Bitcoin price. Specifically, if BTC extends north, clearing the $52,985 range high and ultimately retaking its all-time high of $69,000.

As it stands, BTC is only 23% away from its peak price, with a listing on the S&P 500 likely to inspire confidence in Bitcoin, so much so that BTC could easily start making its way into nearly every portfolio.

Other selection criteria for the S&P 500 include meeting liquidity thresholds and a consistent track record of profit-making for a minimum period of four successive quarters right before making the application.

Meanwhile, in an interview with Bloomberg, MicroStrategy CEO Michael Saylor said, “I’m gonna be buying the top forever,” adding, “Bitcoin is the exit strategy. It is the strongest asset.”

Bitcoin price outlook as MicroStrategy commits to endless BTC purchases

Bitcoin price is leaning to the south, after slipping below the immediate support at $51,335. It comes after the Relative Strength Index (RSI) executed a sell signal, crossing below its signal line (yellow band).

The histogram bars of the Awesome Oscillator (AO) are also flashing red. Those of the Moving Average Convergence Divergence (MACD) fade while edging toward negative territory. The MACD is also almost crossing below its signal line (orange band), a crossover that has historically instigated a bearish cycle.

With these features, Bitcoin price could produce a 7% fall to the $48,000 psychological level. If this level fails to hold, sidelined investors could have a chance to enter right above the supply zone turned bullish breaker between $45,556 and $46,691. However, a break and close below its midline at $46,166 would confirm an extended fall.

BTC/USDT 1-day chart

Conversely, if the bulls find strength, Bitcoin price could push north to escape the confines of the ascending channel. Such a move could see BTC clear the $52,985 range high, with a decisive move above this blockade invalidating the bullish thesis.

The next logical target for Bitcoin would be the $55,000 milestone, or in a highly bullish case, the $60,000 psychological level. 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Price Forecast: Chances of pullback increase as miner selling ramps up

Bitcoin Price Forecast: Chances of pullback increase as miner selling ramps up

Bitcoin (BTC) price extends its decline for a second consecutive day on Wednesday, trading slightly down at around $87,600 after a 30% surge since November 5 pushed BTC to a new all-time high at $89,940.

More Bitcoin News
Crypto fraudster pleads guilty of taking part in $73 million laundering scheme

Crypto fraudster pleads guilty of taking part in $73 million laundering scheme

Daren Li, a Chinese citizen, pleaded guilty to conspiracy to help launder $73 million stolen in cryptocurrency scams. Li laundered funds using a network of shell companies and international bank accounts.

More Cryptocurrencies News
Cardano bulls show signs of exhaustion

Cardano bulls show signs of exhaustion

Cardano’s price is falling on Tuesday as it faces rejection around $0.624 and traders engaged in profit-taking following the recent rally. Technical indicators show signs of weakness in upward momentum as the RSI exits from the overbought territory.

More Cardano News
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP could face pullbacks

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP could face pullbacks

Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trade in the red on Tuesday following strong rallies since last week, driven by crypto-friendly candidate Donald Trump's election victory. 

More Cryptocurrencies News
Bitcoin: Further upside likely after hitting new all-time high

Bitcoin: Further upside likely after hitting new all-time high

Bitcoin hit a fresh high of $76,849 on Thursday as crypto-friendly candidate Donald Trump won the US presidential election. Institutional demand returned with the highest single-day inflow on Thursday since the ETFs’ launch in January.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP