Bitcoin [BTC] Reaches $ 56,000 After MicroStrategy Revenue Increase
Bitcoin (BTC) it strengthened its rally and rose to $ 56,000 after almost 10 days. It has been building bullish momentum since it fell to $ 49,000 last week. However, the latest rally was accompanied by increased revenue from one of its biggest promoters.
The independent, publicly traded business intelligence company, MicroStrategy, has published its report for the first quarter in which it recorded a revenue increase of more than 50%. This amplified the latest rally in the world's largest crypto asset, Bitcoin.
Considering various technical indicators, it can be stated that Bitcoin is that the bulls have finally moved forward to trade above stubborn resistance at $ 55,000 after a period of prolonged bearish action.
The digital asset was now trading at $ 56,272 after a 5% appreciation in the last 24 hours. Additionally, BTC's market capitalization stood at $ 1.044 trillion, while it posted a 24-hour trading volume of $ 47.29 billion, at press time.
Bitcoin (BTC) 1-day price chart:
The chart above demonstrated a surge of positive momentum that is supported by stable trade volume. The mouth of the Bollinger Bands also widened, which further evidenced a phase of high volatility in the currency market.
That is, an abrupt price movement can be expected on both sides in the coming days.
The Relative Strength Index also spiked above the median 50 line, showing a growing buying sentiment among BTC market participants. This could fuel a much anticipated bullish trend towards the psychological $ 60,000.
This latest price movement comes just after MicroStrategy revealed that it now has 91,579 Bitcoins at an average cost of $ 24,214 for each BTC.. The CEO of the platform, Michael Saylor, has detailed that the results of the first quarter were an indicator of the fact that his two-front strategy to do regular business and own Bitcoin has worked like a charm.
MicroStrategy's Bitcoin acquisition strategy began with a total of nearly 20,857 bitcoins purchased at an aggregate price of $ 1,086 billion in the first quarter of 2021, for an average purchase price of around $ 52,087 per Bitcoin.
The report boasted that the book value of the company's digital assets (Bitcoin alone) stood at $ 1.947 billion, as of March 31 of this year. As of March 31, 2021, MicroStrategy's average cost and average book value of bitcoin were approximately $ 24,214 and $ 21,315, respectively. The report also stated:
"In future periods, MicroStrategy may buy additional bitcoins and increase its overall bitcoin holdings or sell its bitcoins and decrease its overall bitcoin holdings."