Bitcoin surged back over the $19,000 level

According to the latest news, Business intelligence firm MicroStrategy reported an increase in convertible bonds. $650 million worth at the rate of 0.75% due in 2025. MicroStrategy identified its working capital needs and other general corporate purposes. Therefore now plans to invest the new proceeds in Bitcoin.

When institutional investors confirm such a large appetite to buy Bitcoin near the lifetime high, it is no surprise that the corrections have been shallow.

According to Tyler Winklevoss, institutional investors are concerned about the expected inflation. Additionally, the scourge of inflation with all the money printing and the stimulus from the coronavirus pandemic lockdowns are worrying. Therefore, they have been putting money into dominant cryptocurrency.

On December 14, the world’s largest cryptocurrency surged back over the $19,000 level. It may challenge the psychological $20,000 resistance.

On December 10 and 11, the dominant cryptocurrency closed below the 20-day exponential moving average, $18,435.

According to December 11’s data, the bulls bought the dip instead of panicking and dumping their positions.

On December 12, the digital currency’s price increased to more than the 20-day EMA. This could have caught some aggressive bears who went short in the previous few days, anticipating a sharp decline. This short covering and buying by the bulls shifted the price over the descending channel today.

If the BTC price falls below $17,500, it could indicate that a short-term top is in place

Furthermore, the price has again hit the $19,500 to $20,000 overhead resistance zone. If the bulls can push the price above this zone, the uptrend’s next leg could start.

Besides, if the price again turns down sharply from the current levels and falls below $17,500, it could indicate that a short-term top is in place. Such a move could decline the price to the next support at $16,191.02.

The 20-day EMA has started to turn up. The relative strength index has rebounded off the 50 levels, suggesting that bulls have the upper hand.

Another essential thing to mention is that the bears are currently trying to stall the up-move at the $19,500 resistance. If the price turns down from the current levels, the bulls will likely buy on any dip to the 20-EMA. A robust rebound of this support will enhance the prospects of a breakout over $19,500.

Furthermore, a breakdown of a bullish setup traps several aggressive bulls, resulting in panic selling. If that occurs, a fall to $16,191.02 is likely.