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- BIT rose by more than 20% in the last 7 days.
- BIP-18:$BIT purchase program approved by 100% votes.
- Price rise attracts users.
Voting on BIP-18 started on Dec 24th, which proposed to set a Target Daily Purchase Amount (TDPA) at $2.0 million USDT per day starting Jan 1st, 2023, for 50 days. The vote concluded in agreement by 100% on new year’s eve and was executed as planned. The key reasons for this proposal were to prioritize BitDAO capital deployment, with a higher focus on $BIT products and a lower on swap and investments yield strategies. Post $BIT purchase, the BitDAO Treasury will still hold $300 million USDT/USDC and 0.27 million ETH, worth $345 million, which should be sufficient to cover 5+ years of $BIT product development.
The char-t-ale
The prices were seen moving in the parallel channel before the breakout occurred. The prices shot up, managing to hold a spot above the 20 and 50 EMA. The volume witnessed a sudden crowd as users flooded the market and when the news about the vote surfaced. A successful bull run can be formed if the current price can sustain above the 100-EMA and signal chances of a surge to $0.45.
The analysis suggests that the rise predicted can be seen anytime over 50 days of buying. The upward-sloping CMF suggests more rally is yet to come. The MACD records steady entry by buyers and a gradual rise in interest. The RSI suggests that BIT may turn overbought anytime, as it currently holds a place close to the upper border.
The peephole
The closer time frame signals a bullish flag formed by the BIT prices. The CMF, however, is beneath the baseline but slopes up and may turn positive with the rise. The MACD sees a jump in interest and active participation by both sellers and buyers. The RSI floats in the upper half and within the 60-70 range, mirroring enthusiastic buyers.
Conclusion
The BitDAO’s purchase proposal has boosted the BIT market and drawn attention to its new year resolution and what it means to the holders. The support zone of $0.24 can be relied upon to invest in the token.
Technical levels
Support levels: $0.24 and $0.19
Resistance levels: $0.43 and $0.47
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
