Bitcoin is currently in an unusual situation where technical signals are showing potential downside, but the market reality tells a different story.
At the time of writing, Bitcoin is currently at $68,579, up 0.04% since it opened early Tuesday in Asian trading.
On the chart, a bear flag pattern usually indicates that the price could fall below $50,000, but the pressure is seen to be weakening due to the huge demand coming from Strategy led by Michael Saylor.
Since early March, Strategy has been buying Bitcoin at a rate far exceeding new production by miners, absorbing almost three times the supply entering the market.
This aggressive action has indirectly reduced selling pressure and limited the price decline, making the current situation no longer entirely dependent on technical analysis alone.
In fact, every time Strategy has managed to raise funds through the sale of their special shares, Bitcoin purchases have increased and the price has also shown a positive reaction in a short period of time.
Despite pressure from large investors and long-term holders taking profits, this strong demand has the potential to change the direction of the market.
If Bitcoin manages to break through the $70,000 level, the bearish pattern will be invalidated and open the way for a price surge to the $108,000 to $110,000 area.
Furthermore, Bitcoin’s position near key support levels such as the 200-week moving average suggests that the market may be forming a solid floor, as it has done before major surges in previous cycles.
Bitcoin appears to be at the crossroads of technical pressure and fundamental strength.
If Strategy’s buying momentum continues, not only will the $110,000 target become realistic, but there is also a greater possibility for higher gains in the long term.
