Bitcoin in Green as Microstrategy Increased Bitcoin Holdings

Pathik Bhattacharya
Pathik Bhattacharya

Updated on January 16, 2023 10:58 AM

Published on December 29, 2022 06:18 AM

Following its most recent purchases, Microstrategy currently owns around 132,500 bitcoin.

Bitcoin in Green as Microstrategy Increased Bitcoin Holdings
Source: Unsplash

Microstrategy Inc., a Nasdaq-listed company, stated Wednesday that it had bought additional bitcoin for its corporate treasury. The company's founder and executive chairman, Michael Saylor, tweeted on Wednesday:


Microstrategy confirmed in a statement with the Securities and Exchange Commission (SEC) that the 2,500 Bitcoin were obtained by its fully-owned subsidiary Microstrategy between November 1 and December 24.

Between November 1 and December 21, the subsidiary purchased about 2,395 BTC at an average price of $17,871 per coin. On December 22, it sold around 704 BTC for $16,776 per coin. On December 24, Microstrategy purchased around 810 additional BTC for $16,845 for each coin. Bitcoin is now trading at $16,656.80 at the time of writing.

Microstrategy traded bitcoin for the first time in December, after amassing the cryptocurrency for its corporate treasury in 2020. The corporation stated that it was selling BTC for tax reasons.

According to Saylor, Microstrategy is investing in Bitcoin "for the long run." He continued:

“Our strategy is to buy bitcoin and hold the bitcoin, so there’s no price target … I expect bitcoin is going to go into the millions. So, we’re very patient. We think it’s the future of money.”

This news surrounded the market and hence drove the Bitcoin price into the green zone. Whenever there’s the big news of an institution or big business tycoon buying Bitcoin, the market sentiment automatically manipulates.

Related Read: Brazilian President Signed Bill for Bitcoin Payments, Prices May React

Bitcoin Price Analysis

Bitcoin's current price is $16,558.45 USD, with a 24-hour trading volume of $16,297,583,256 USD. Bitcoin has fallen by 0.69% in the previous 24 hours. BTC is now ranked first on CoinMarketCap, with a market cap of $318,683,721,284 USD. It has a total quantity of 21,000,000 BTC coins and a circulating supply of 19,245,987 BTC coins.

Source: CoinMarketCap

Also Read: Bitcoin Taproot Upgrade: All you need to know

Bitcoin's price fell further on Tuesday as the US equities market plunged. What is remarkable here is that every time BTC's value has fallen, Nasdaq has been at the forefront of this slide, followed by the S&P 500 and, finally, the Dow Jones index, indicating a transfer across sectors as traders leave tech for other markets. As the yields on US Treasury bonds grow more appealing, more investors are preferring to invest in either cash or these bonds.

On a Daily chart for long-term investors, the pattern in making is quite confusing as Bitcoin recently fell almost 75% from its all-time high and the candles progressing further isn’t making any perfect pattern. From price action, previously Bitcoin made an Ascending trendline which obeyed the line before the decline later. 

Right now, the price is supporting the $16,557 mark which is not much lower to be tested. The resistance is above the $17,000 mark. If the price breaks the resistance in future days, a rally may happen and if breaks the support, the next support it will test will be between 15000-16000.

The relative strength index (RSI) for Bitcoin is also in a bearish zone (at 43), suggesting that bearish momentum could increase if the price drops below $16,000.

Looking at the moving averages to measure the momentum of the price, Bitcoin is expected to face strong resistance at the 100-day simple moving average (SMA) line. The MACD is also making red bars which indicates an upcoming bearish movement.

Source: TradingView

Bitcoin price research on 4-hour and hourly timescales show that the cryptocurrency is still trapped in a bearish flag pattern. If Bitcoin falls below the $16,300 support level, it is likely to continue falling toward $15,900. However, if bulls manage to break over $17,000, a rally might begin shortly.

The technical indications indicate that Bitcoin is presently in a negative zone and that the price will likely continue to fall until it settles around $16,500. The Relative Strength Index (RSI), for instance, is below 40, and the MACD is indicating a bearish divergence.

The Fibonacci retracement level indicates that critical support is near $16,000. If the bulls can hold above this level, a short-term surge is possible. A comeback is possible if the bulls secure support above $16,000 and push BTC above the 50-day SMA line.

Source: TradingView

Long-term Bitcoin holders are an important group because their conduct provides great information about future market patterns. The SOPR of long-term investors is a strong indicator that quantifies the profit-to-loss ratio obtained by these market players and is one of the go-to metrics for on-chain research. Values greater than one represent realized gains, whereas values less than one imply losses.

However, the indicator has lately hit an exciting level, which characterized the bear market bottoms of the previous cycle. As a result, from a macro and multi-cyclical perspective, the bear market bottom range does not appear to be far away and may potentially be forming right now.

Source: CryptoQuant

Bitcoin FAQs

Is Bitcoin legal?

Although many countries recognize bitcoins as a kind of finance, just a few consider them legal tender. Outright restrictions exist in China, Algeria, Bangladesh, Egypt, Iraq, Morocco, Nepal, Qatar, and Tunisia.

How long will it take to mine 1 Bitcoin?

It takes about 10 minutes to mine one Bitcoin, however, this is with perfect hardware and software, which isn't always cheap and only a few individuals have it. Most users can mine a Bitcoin in 30 days, which is more usual and reasonable.

Can BTC addresses be hacked?

Cryptocurrency is a decentralized digital money that secures transactions and ownership information via encryption. Transactions involving cryptocurrency are recorded on a digital database known as a blockchain. The fundamentals behind blockchain technology make hacking into a blockchain almost difficult.

How does Bitcoin make money?

Miners on the Bitcoin network make money by validating blocks and being reimbursed for their efforts. Bitcoins may be traded for fiat money and used to make purchases from merchants and retailers who accept them via cryptocurrency exchanges.

Can I mine Bitcoin on my phone?

Solo or pool mining services are available for crypto mobile mining on iOS and Android platforms. However, Bitcoin can’t be mined using mobile phones as it is a very heavy process and requires heavy equipment.

Disclaimer: The article is merely the opinion of the writer and is not intended to be taken as investment advice.



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