[Bitcoin price is about to soar after MicroStrategy spends $500 million to buy BTC]
Bitcoin price came close to breaking through the $70,000 resistance level on Wednesday, driven by reports of US Consumer Price Index (CPI) data. Inflation remained flat in May, according to the U.S. Bureau of Labor Statistics (LBS). This shows that economic factors remain positive even amid geopolitical tensions caused by the Russia-Ukraine war and the Israel-Hamas war.
MicroStrategy, the largest corporate holder of Bitcoin, announced a special proposal to raise $500 million through convertible senior notes. The fundraising adds an additional $75 million, which will be used "to purchase additional Bitcoin and for general corporate purposes," according to a statement from the company.
MicroStrategy added in the statement: “The notes will be offered and sold to individuals deemed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act. The company continues to increase its investment in Bitcoin and now owns 214,400 BTC, The total value of these Bitcoins exceeds $14.5 billion, and the average purchase cost is $7.54 billion.
MicroStrategy Incorporated (MSTR) stock closed at $1,603 on June 12, compared with $680 at the start of the year, according to Yahoo Finance.
Bitcoin hit $70,000 after bouncing off support at $66,000, but a pullback later saw bulls gather more liquidity near $67,000. This temporary decline could be due to profit-taking and a lack of investor confidence in a move above $70,000.
On the chart, bulls have an opportunity to challenge $70,000 again with immediate support provided by the 200-day exponential moving average (EMA). The recent emergence of a buy signal on the Moving Average Convergence Divergence (MACD) indicator also supports a potential bullish outcome later this week. If the blue MACD line remains above the orange signal line, traders will regain confidence. A breakout of the 20-day EMA (blue) near the previous day’s open would further strengthen the bulls’ grip.
According to Bitcoin price predictions from CoinGape’s team of qualified analysts, other key milestones include a breakout of $70,000 and psychological resistance at $72,000. A successful break above these two resistance levels could propel Bitcoin into the next bull run, with a mid-term target of $80,000 and a year-end target of $100,000.
