3 key indicators suggest Bitcoin price is preparing to retest $11,000

The price of Bitcoin is nearing $11,000 once again after a shaky start to October.

The possible catalysts are Square's $50 million investment in Bitcoin, a prolonged accumulation phase, and the recent spike in on-chain activity.

Square's $50 million Bitcoin investment is symbolic.

On Oct. 8, Square, an $81 billion payments conglomerate, announced that it had purchased $50 million worth of Bitcoin which represents 1% of the company's total assets.

In an official statement, Square's chief financial officer Amrita Ahuja said the Bitcoin investment is a step toward financial inclusion.

A $50 million investment for a company the size of Square is not a major allocation but it does symbolize the rising institutional demand institutions have for Bitcoin as an investment vehicle and a store of value.

The announcement comes merely a month after MicroStrategy, a Nasdaq-listed billion-dollar firm, bought $425 million worth of Bitcoin.

Mohit Sorout, a partner at Bitazu Capital, pinpointed the positive market movement of Bitcoin despite negative events in early October.

Bitcoin has been ranging in between $10,500 and $11,000 for most of the past month.

In addition to the Bitcoin blockchain network activity, the hashrate is continuously increasing to new highs.