MicroStrategy announced a $1.1 billion purchase of BTC, and the U.S. Spot Bitcoin ETFs bought $3.1 billion BTC in the last 4 trading days. These massive inflows look set to continue. Supply is getting thinner. How high could the Bitcoin price go?
MicroStrategy wants to buy it all
Michael Saylor, Chairman of MicroStrategy, posted his now customary weekly purchase announcement on X, with the statement that MicroStrategy had acquired 11,000 BTC at a cost of $1.1 billion. This brings the company’s total Bitcoin holdings to 461,000 BTC.
This isn’t all. MicroStrategy shareholders recently agreed to allow the company to increase the number of authorised shares from 330 million, to 10.33 billion, which is a 33x increase.
According to James from the InvestAnswers YouTube channel, even if MicroStrategy issued only 20% of these shares, he estimates that the BTC price would go to $564,000. The YouTube analyst claims that 100% of MicroStrategy’s share issuance would more than buy the entire remaining supply of all Bitcoin.
U.S. Spot ETFs buy big once more
As one chews this over, it should be borne in mind that the U.S. Spot Bitcoin ETFs bought 31.66K BTC over just the last four trading days. This amounts to a net inflow of BTC over this period worth almost $3.16 billion.
A BTC supply that could soon disappear
One could also factor in that the Trump Administration is thinking of establishing a Bitcoin treasury, and that at least 10 states are preparing legislation that could potentially also allow individual Bitcoin treasuries.
There is the possibility of a change of heart on this, at least as far as the US goes, but there are likely to be other nation states that are buying now, or who are thinking to go down this route.
There are only 21 million BTC that will ever come into existence. Probably at least 5 to 6 million of this has been lost, which leaves around 15 million BTC, making it the scarcest major monetary asset on the planet, with a supply that is quite possibly soon to disappear.
With this in mind, there is the potential for the most explosive game theory asset race, with the first government to realise that it can just print paper currency in order to buy the hardest money on the planet, winning.
BTC horizontal supports
Source: TradingView
With all this in mind, $BTC is a little down for the day so far. However, this brings the price down to a support/resistance level at $105,350. If the price fails to hold here, it could drop to horizontal supports at $103,850, $102,800, or even down to retest the 0.382 Fibonacci at $101,700. Just below this, the main $100,000 down to $99,000 support levels would certainly be strongly contested by the bulls.
$106,000 horizontal resistance needs to be broken
Source: TradingView
The daily chart shows that the $106,000 resistance is the one that Bitcoin bulls must break and hold above in order for the next upward leg to take place. The $106,000 resistance level is where the daily candle bodies are closing, and only candle wicks are going above, giving an idea of the amount of respect there is for this level.
Potential fireworks next week
Source: TradingView
Finally, on the weekly chart, it can be seen that things are looking very good indeed for the bulls. The main ascending trendline has been well respected, and the much smaller descending trendline has been broken to the upside, and will be confirmed as long as the candle body stays above the trendline, which looks very likely thus far.
If this weekly candle body can close anywhere above the $106,000 horizontal resistance, or even $104,500, stand by for potential fireworks next week.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.