In a strategic move, business intelligence (BI) company MicroStrategy and its affiliates have made a bold financial move by increasing their bitcoin (btc) holdings.
MicroStrategy bolsters btc holdings
According to a recent presentation With the US Securities and Exchange Commission (SEC), MicroStrategy has expanded its bitcoin holdings by acquiring an additional 5,445 btc, totaling approximately $147.3 million. The average purchase price of these Bitcoins was $27,053 per unit.
With this latest acquisition, MicroStrategy’s total bitcoin holdings now stand at 158,245 btc. The company has accumulated this substantial amount of digital assets at an average price of around $29,582 per bitcoin, equivalent to approximately $4.68 billion.
According to the company, these acquisitions underscore MicroStrategy’s commitment to bitcoin and long-term belief in its potential. The company has been actively accumulating bitcoin over time, establishing itself as a major player in the cryptocurrency market.
In contrast, MicroStrategy stock, which trades as MSTR on the Nasdaq, has been on a prolonged downward trend since July 13.
As of the latest trading session, the stock has a current price of $321.25, reflecting a decline of 0.14% since the stock market opened.
Notably, stock performance has shown a significant correlation with the value of bitcoin over the same period as both have seen declines.
Furthermore, MicroStrategy’s decision to expand its bitcoin portfolio coincides with a phase of consolidation in the cryptocurrency market. bitcoin has been trading between $25,000 and $27,000 since August 16.
The largest cryptocurrency on the market is valued at $26,200, which represents a drop of 1.5% in the last 24 hours and a decrease of more than 4% in the last seven days.
bitcoin bearish fractal remains strong
Renowned crypto analyst Rekt Capital suggests That bitcoin‘s bearish fractal, previously highlighted by NewsBTC, remains intact, raising the question of whether the cryptocurrency is still in Phase AB or has moved into Phase BC, as seen in the chart below.
According to Rekt Capita, bitcoin typically forms a new lower high in the AB Phase, and the recent price movements, whether reaching around $29,000 or as low as $27,400, satisfy this criteria.
However, a steeper lower high is possible if the $25,000 to $26,000 support level is broken and the bull market support band becomes resistant.
For Phase BC to begin, two conditions must be met. First, a relief rally must occur confirming a new lower high. Secondly, the support area between $25,000 and $26,000 must be lost.
Although a relief rally has recently been seen forming a new lower high, the second condition remains unfulfilled. The BC phase will be initiated if the support area of $25,000 to $26,000 fails.
Several key technical events are anticipated. During the downside move, bitcoin may briefly touch the $25,000 to $26,000 area. If the price struggles to break above $26,000 and acts as resistance, it could indicate a weakening of the support in the $25,000 to $26,000 range.
In such a case, a collapse to the region of $22,000 to $24,000 could occur to establish a local fund designated “C”.
To invalidate the bearish bitcoin fractal, three criteria must be met. First of all, the bull market support band must hold as support. Second, a weekly close above the lower high resistance is required. Lastly, breaking the yearly high of $31,000 would further challenge the bearish scenario.
Featured image from Shutterstock, chart from TradingView.com
