In a strategic move, business intelligence (BI) company MicroStrategy and its subsidiaries have made a bold financial maneuver by increasing their Bitcoin (BTC) holdings.
MicroStrategy is strengthening BTC holdings
According to a recent filing with the US Securities and Exchange Commission (SEC), MicroStrategy has expanded its Bitcoin holdings by purchasing an additional 5,445 BTC, worth a total of approximately $147.3 million. The average purchase price for 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 significant amount of digital assets at an average price of around $29,582 per Bitcoin, which is 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 and has established itself as a major participant in the cryptocurrency market.
MicroStrategy’s extended downtrend on the daily chart. Source: MSTR on TradingView.com
In contrast, MicroStrategy’s stock, listed on the Nasdaq as MSTR, has been following a sustained downward trend since July 13.
As of the last trading day, the share price is currently at $321.25, down 0.14% since the market opened.
Notably, the stock’s performance had a significant correlation with the value of Bitcoin over the same period, as both prices experienced declines.
Additionally, MicroStrategy’s decision to expand its Bitcoin portfolio coincides with a period of consolidation in the cryptocurrency market. Since August 16, Bitcoin has been trading between $25,000 and $27,000.
Sideways movement of BTC price on the daily chart. Source: BTCUSDT on TradingView.com
Sideways movement of BTC price on the daily chart. Source: BTCUSDT on TradingView.comThe largest cryptocurrency on the market is worth $26,200, down 1.5% in the last 24 hours and down over 4% in the last seven days.
The bearish Bitcoin fractal remains strong
Renowned crypto analyst Rekt Capital suggests that the bearish Bitcoin fractal previously highlighted by NewsBTC remains intact, indicating whether the cryptocurrency is still in Phase AB or has moved into Phase BC, as shown in the chart below.
According to Rekt Capita, Bitcoin typically forms a new lower high in phase AB, and recent price movements, whether reaching around $29,000 or just $27,400, meet this criteria.
BTC’s bearish fractal. Source: Rekt Capital on X.
BTC’s bearish fractal. Source: Rekt Capital on X.However, a more pronounced lower high is possible if the $25,000-$26,000 support is broken and the bull support band becomes resilient.
For Phase BC to begin, two conditions must be met. First, there must be a recovery rally that confirms a new lower high. Secondly, the $25,000-$26,000 support area needs to be lost.
Although a recovery rally with a new low has been observed recently, the second condition remains unfulfilled. Phase BC will be initiated if the $25,000-$26,000 support area fails.
Several important technical events are expected. During the downward move, Bitcoin could briefly reach the $25,000-$26,000 area. If the price struggles to break above $26,000 and acts as resistance, it could indicate weaker support in the $25,000-$26,000 area.
In such a case, there could be a drop into the $22,000-$24,000 area to form a local bottom, referred to as “C.”
In order to invalidate the bearish Bitcoin fractal, three criteria must be met. First, the Bull Market Support Band must be held as support. Second, a weekly close above lower high resistance is required. Finally, breaking the annual high of $31,000 would further challenge the bearish scenario.
Featured image from Shutterstock, chart from TradingView.com
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