MicroStrategy acquires $147.3 million worth of Bitcoin.

MicroStrategy acquires $147.3 million worth of Bitcoin.

MicroStrategy Acquires More Bitcoin, Bolstering Its Holdings

In a strategic move, MicroStrategy, the business intelligence (BI) company, and its subsidiaries have made a bold financial maneuver by increasing their Bitcoin (BTC) holdings. According to a recent filing 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 for these Bitcoins was $27,053 per unit.

MicroStrategy has been actively accumulating Bitcoin over time, establishing itself as a major participant in the cryptocurrency market. With this latest acquisition, their total Bitcoin holdings now stand at 158,245 BTC, which have been accumulated at an average price of around $29,582 per Bitcoin, equivalent to approximately $4.68 billion. These acquisitions highlight MicroStrategy’s commitment to Bitcoin and their long-term belief in its potential.

MicroStrategy’s Move in Comparison to the Traditional Stock Market

Interestingly, while MicroStrategy continues to accumulate Bitcoin, its stock, listed as MSTR on the Nasdaq, has followed a prolonged downward trend since July 13th. As of the latest trading session, the stock is currently priced at $321.25, reflecting a decrease of 0.14% since the stock market’s opening. This trend in MicroStrategy’s stock value has exhibited a significant correlation with the value of Bitcoin over the same period, as both have experienced declines.

MicroStrategy’s decision to expand its Bitcoin portfolio also coincides with a consolidation phase in the cryptocurrency market. Bitcoin has been trading between $25,000 and $27,000 since August 16, experiencing a 1.5% decline over the past 24 hours and a decrease of over 4% over the past seven days.

Analyzing the Bearish Fractal of Bitcoin

Renowned crypto analyst Rekt Capital suggests that the bearish Bitcoin fractal, previously highlighted by NewsBTC, remains intact. This raises the question of whether the cryptocurrency is still in Phase A-B or has transitioned to Phase B-C, as seen in the chart below.

BTC’s bearish fractal. Source: Rekt Capital on X.

According to Rekt Capital, Bitcoin typically forms a new lower high in Phase A-B, and recent price movements, whether reaching around $29,000 or as low as $27,400, satisfy this criterion. However, a more pronounced lower high is possible if the support level of $25,000 to $26,000 is broken and the Bull Market Support Band becomes resistant.

For Phase B-C to commence, two conditions need to be met. Firstly, a relief rally must occur, confirming a new lower high. Secondly, the $25,000 to $26,000 support area must be lost. Although a relief rally forming a new lower high has been witnessed recently, the second condition remains unfulfilled. Phase B-C will be initiated if the $25,000 to $26,000 support area fails.

Anticipated Technical Events

Looking ahead, several key technical events are anticipated. During the downward movement, Bitcoin may briefly touch the $25,000 to $26,000 area. If the price struggles to surpass $26,000 and acts as resistance, it could indicate weakening support in the $25,000 to $26,000 range. In such a case, a collapse to the $22,000 to $24,000 region might occur to establish a local bottom denoted as “C.”

To invalidate the bearish Bitcoin fractal, three criteria need to be met. Firstly, the Bull Market Support Band must be held as support. Secondly, a weekly close above the lower high resistance is required. Finally, breaching the yearly high of $31,000 would further challenge the bearish scenario.

MicroStrategy’s bold move to increase its Bitcoin holdings demonstrates not only their confidence in the cryptocurrency but also their belief in its long-term potential. It is a testament to MicroStrategy’s commitment to staying at the forefront of the blockchain industry and emerging as a major player in the evolving digital economy. With the correlation between MicroStrategy’s stock and Bitcoin’s value, it highlights the impact of cryptocurrency on traditional markets and the growing influence of blockchain technology.

As the cryptocurrency market enters a consolidation phase, the behavior of Bitcoin and the fulfillment of technical conditions will be closely observed. Whether the bearish fractal holds or not, the market’s response to these dynamics will shape future investment decisions and further solidify the role of Bitcoin in the global financial landscape.

(Featured image from Shutterstock, chart from TradingView.com)