- Bitcoin price exits a two-week consolidation trend with a bullish breakout from an inverted head and shoulder pattern.
- The approved merger of Asset Entities and Strive Enterprises comes alongside a $750 million PIPE, positioning the combined company for a major Bitcoin treasury initiative.
- BTC’s fear and greed index is wavering at 49%, indicating a neutral sentiment among crypto participants.
The Bitcoin price jumped over 2% during Wednesday’s U.S. market hours to reach $113,826 in trading value. After a sluggish week, the BTC price showed some momentum to reclaim its position above the $113,500 resistance. This buying pressure is likely fueled by growing institutional investment and steady ETF inflow. With the recent price jump, the buyers tease a bullish breakout from a traditional reversal pattern called an inverted head and shoulders. Is it a rally to $125,000 close?
Asset Entities and Strive to Form Public Bitcoin Treasury Company
Asset Entities Inc. (Nasdaq: ASST) has obtained the consent of its shareholders to proceed with the scheduled merger with Strive Enterprises, Inc., which is a step toward becoming a publicly traded Bitcoin Treasury company. The investors of Strive had approved of the deal earlier in the month, on September 4.
However, the finalization is still subject to other conditions, such as approvals by Nasdaq of the combined company listing application.
The resulting merger will be called Strive, Inc., with the current Nasdaq ticker, ASST. Leadership will also change: Matt Cole of Strive will become Chief Executive Officer and Chairman, and the President and Chief Executive Officer of Asset Entities, Arshia Sarkhani, will become Chief Marketing Officer and a board member.
“This shareholder approval is a defining moment in our mission to build a world-class Bitcoin Treasury Company,” said Mr. Cole. “Through our reverse-merger structure, zero debt profile, and $750 million PIPE, we are uniquely positioned relative to peers to execute our strategy and maximize Bitcoin per share for investors. Our focus is on disciplined, long-term strategies designed to outperform Bitcoin itself over time and create perpetual shareholder value.”
“We are gratified that our stockholders have voted to approve this merger,” added Mr. Sarkhani. “This vote, we believe, opens the door to building one of the biggest and most successful Bitcoin treasury companies and providing maximum value to our legacy shareholders.”
Funding will be an essential part of the transition. By the time of closing, the company will have completed a private placement (PIPE) of over $750 million of gross proceeds. Otherwise, PIPE-related warrants may raise another $750 million on exercise, and the potential total funding pool would be over 1.5 billion.
According to market observers, should the company deploy this into Bitcoin as a treasury strategy, such capital inflows may create a significant buying force on BTC markets.
Bitcoin Breaks Weekly Consolidation With Reversal Pattern Surge
The 4-hour chart analysis of Bitcoin shows the recent price jump breaks above the neckline resistance of the inverted head and shoulder pattern at $113,400. The pattern is mainly observed at the end of a downtrend, characterized by three troughs, the middle head, and two shallow shoulders.
The bullish breakout also reclaimed the 50-day exponential moving average, signaling the renewed bullish sentiment in price. If the breakout holds and volume action starts to pick up, the Bitcoin price could jump 3% up to challenge $117,260 resistance, followed by a leap to a $125,000 high.
On the contrary, the Bitcoin price could retest the breached trendline at $113,400 before the anticipated rally. If the buyers failed to hold this floor, the selling pressure would accelerate and force a continuous correction.
Also Read: XRP to the Moon: Banks’ SWIFT Adoption Won’t Stop the Surge
