- Bitcoin price recovery, followed by declining trading volume, hints at weakness in buyers’ conviction.
- Earlier today, NEXT Technology Holding submitted a Form S-3 registration statement with the U.S. SEC seeking to raise $500 million through a shelf offering.
- BTC’s daily chart shows immediate resistance at $117,350, with close support at $113,500.
Bitcoin price experienced significant volatility around the $115,000 mark. In the Asian market, the coin price attempted to continue its recovery, reaching a high of $116,677, but the U.S. market saw a low of $114,400. While the lack of direction may create concern for retailers, the corporate firms continue to show their interest in BTC. Today, NEXT Technology Holding filed with the U.S. SEC to raise $500 million through a shelf offering, with a portion of this fund intended to accumulate BTC. Will the Bitcoin price recovery continue?
NEXT Technology Plans $500M Shelf Offering Including Bitcoin Option
NEXT Technology Holding Inc. has already filed a Form S-3 registration statement with the U.S. Securities and Exchange Commission, detailing strategies that may allow the company to raise up to $500 million. Through the filing, the company becomes flexible to issue different securities in the future under what is referred to as a shelf offering. This type of structure enables the company to sell the securities in a single or multiple tranches as time passes, based on the market conditions and the internal needs.
Based on the information in the registration, the funds raised can be channeled to various operations and strategic requirements. Potential areas for spending include general corporate operations, such as enhancing working capital, subsidizing current research and development programs, and covering general business expenses.
The company also pointed out that some of the capital may be used in expansion opportunities through acquisitions. The other possible proceeds that were pointed out in the filing are the purchase of bitcoin, but no particular amount or timing of such purchases was specified.
Any substantial shift toward doing so would draw some interest in the digital asset markets, as large institutional buys may have a potentially significant impact on market liquidity and sentiment.
Currently, the company has yet to determine the distribution of the funds between these categories. The shelf registration will give NEXT Technology Holding Inc. the freedom to vary its strategy as time goes on, deciding when and how much to invest depending on the opportunities and priorities.
Bitcoin Price Halts at Key Crossroad
In the last two weeks, the Bitcoin price witnessed a V-shaped recovery from $107,300 to $115,400, registering a 7.5% gain. The buying pressure came as a renewed recovery after a significant correction since late August, along with ETF inflow and futures market activity.
This bullish reversal rebounded above the 38.2% Fibonacci retracement support level, which is typically marked as a healthy correction to recuperate the bullish momentum. The buying pressure is further reinforced by the positive sentiment in the market as price reclaims the exhausted 20 and 50 exponential moving averages.
If the bullish momentum persists, the coin price could reach the immediate resistance of $117,350. The potential breakout could accelerate buying pressure and push the price 5.5% up, challenging the all-time high of $123.45.
However, a look at Bitcoin’s daily chart shows a declining trend in volume, backing the current recovery. This divergence indicates a weakness in buyers’ conviction to drive a high-momentum rally
Thus, a breakdown below $113,400 would support sellers’ renewed correction momentum.
