The business intelligence (BI) firm MicroStrategy and its affiliates have increased their Bitcoin (BTC) holdings in a daring financial move.
BTC Holdings are bolstered by MicroStrategy
In a recent statement with the US Securities and Exchange Commission (SEC), MicroStrategy stated that company has increased the amount of Bitcoin it now owns by purchasing an additional 5,445 BTC,
For a total of around $147.3 million. These Bitcoins were bought on average for $27,053 each.
With this most recent purchase, MicroStrategy currently owns 158,245 Bitcoins in total. This significant quantity of digital assets was amassed by the corporation at an average cost of about $29,582 per Bitcoin, or $4.68 billion.
These purchases, according to the business, demonstrate MicroStrategy's dedication to Bitcoin and long-term faith in its future. The corporation established itself as a significant player in the cryptocurrency industry over time by actively amassing Bitcoin.
On the other hand, since July 13th, the Nasdaq-listed MSTR stock, which represents MicroStrategy, has been in a persistent downward trend.
The stock's price as of the most recent trading session is $321.25, showing a decline of 0.14% from the start of the market.
Notably, the stock's performance during the same time period showed a strong association with the price of Bitcoin, as both fell.
Additionally, the expansion of MicroStrategy's Bitcoin holdings comes at a time when the cryptocurrency market is consolidating. Since August 16, the price of bitcoin has fluctuated between $25,000 and $27,000.
The value of the biggest cryptocurrency on the market is $26,200, a loss of nearly 4% over the previous seven days and 1.5% over the previous 24 hours.
Strong Hold for Bitcoin Bearish Fractal
Rekt Capital, a renowned cryptocurrency analyst, claims that the negative Bitcoin fractal that NewsBTC previously highlighted is still intact,
Raising the question of whether the cryptocurrency is still in Phase A-B or has moved into Phase B-C, as shown in the chart below.
Rekt Capita claims that throughout Phase A-B, Bitcoin often makes a new lower high. Recent price moves, whether they reached about $29,000 or as low as $27,400, meet this need.
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| MicroStrategy Increases Bitcoin Holdings with Purchase of $147.3 Million |
However, if the support level of $25,000 to $26,000 is breached and the Bull Market Support Band becomes resistive, a more significant lower high may occur.
Phase B-C cannot begin unless two requirements are satisfied. First, a relief rally confirming a new lower high must take place. The second step is to lose the $25,000 to $26,000 support area.
The second requirement is still unmet, notwithstanding a recent relief rally that formed a new lower high. If the $25,000 to $26,000 support area fails, Phase B-C will start.
There are several significant technical events expected. Bitcoin may temporarily approach the $25,000 to $26,000 range during the downward swing. When the price faces resistance at $26,000, it can be a sign that support for prices between $25,000 and $26,000 is waning.
In this scenario, there may be a drop to the $22,000 to $24,000 range, establishing a local bottom designated as "C."
Three conditions must be satisfied in order to invalidate the bearish Bitcoin fractal. First, support must be maintained at the Bull Market Support Band. Second, a weekly close above the resistance of the lower high is necessary. Finally, a violation of the $31,000 annual high would seriously undermine the bearish outlook.
Disclaimer: We don,t provide any Investment advice.
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