Bitcoin Clings to $30,000 Shortly After MSTR Add Coins To Treasury
Bitcoin bounced 17% from the lows on Tuesday shortly after MicroStrategy announced another major bitcoin bet. The firm now holds 105,084 BTC and has unveiled plans to buy even more in the future.
Meanwhile, BTC/USD is at an important crossroad, the choice of which shall rule the fate of many.
Let’s dig in.
MicroStrategy Bets Big on Bitcoin, Holding 105,084 BTC in Total
MicroStrategy has acquired 105,084 bitcoin ($489 million), purchased from the proceeds of the sale of $500 million in senior debt notes last week.
The US intelligence firm added 13,000 Bitcoin to its treasury from $489 million raised from corporate bonds sale to investors, averaging a buy in price of $37,617.
Check out the full article here!
Bitcoin is at a Cross Road
Bitcoin broke through the last line of defence below $30,000 on Tuesday only to swiftly recuperate the losses and tick 17% higher a few hours later.
At the time of writing, BTC/USD exchanges hands at $34,640 and trades within the bottom half of the range. Perpetual futures funding rates remain slammed in the negative (Bitmex), which means perpetual short traders are paying long traders. This is a positive development.
The pivot point rests at around the $36,000 level, setting out a clear target for bullishly biased traders. If buyers step in and momentum catches on, then a potential MTF (medium time frame) flip of the level would open the door to continuation towards the range high ($41,000).
In order for this to materialise, buying pressure would have to offset sellers which have dominated the market since the May 19th drop. But all bad things come to an end.
While there are no certainties, several signals suggest that this relief rally could have legs.
Per the liquidation data above, bulls have been on the back foot since mid-June but if we assume that BTC/USD is still range-bound, then it’s not unreasonable to expect the pendulum to swing the other way.
Another promising data point is the increasing retail interest, which has picked up to levels not seen since late May. On average, increased spot volumes are signs of a recovering market and also help to dampen liquidation spikes from futures trading activity.
On the flip side, should BTC/USD fall through the $28,800 low, it’s likely that a prolonged bear market is in play, in which case bulls will go into hibernation until they are called upon again as buyers of last resort. Jokes aside, losing the range low would be the nail in the coffin for a market which hangs in the balance (in my view). All in all, Bitcoin is at a cross road, and must choose between the fiery chasm of mount doom, or Weathertop — filled with glistening sunlit pastures where bulls may find nourishment and much needed respite.
It all hangs in the balance.
“ Now is the hour! Riders of Rohan! Oaths you have taken, now fulfill them all, to lord and land!” — Eomer to the great Satoshi warriors of old circa 1559 BC.
Catch you next time.
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Originally published at https://mailchi.mp.