MicroStrategy Continues Bitcoin Accumulation Amid Market Slump – WORLD CRYPTO BUSINESS

MicroStrategy Continues Bitcoin Accumulation Amid Market Slump


Key Takeaways

MicroStrategy has disclosed that it purchased an additional 480 Bitcoin between May 3 and Jun. 28.
The firm now holds 129,699 Bitcoin.
The number one crypto is currently sitting at a pivotal support level that could trigger a rebound.

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MicroStrategy has signaled that it is committed to increasing its Bitcoin holdings despite the recent market downturn. The business intelligence firm announced Wednesday that it had purchased another 480 Bitcoin as the leading cryptocurrency sits 71% short of its all-time high price.

MicroStrategy Increases Holdings

MicroStrategy has taken advantage of the Bitcoin price dip.

In a regulatory filing published Wednesday, Michael Saylor’s data analytics firm disclosed it had purchased an additional 480 Bitcoin at an average price of $20,817 between May 3 and Jun. 28. MicroStrategy spent roughly $10 million on the coins.

The recent purchase brings MicroStrategy’s holdings to around 129,699 Bitcoin, with the firm’s average cost basis sitting at $30,664. MicroStrategy is the world’s largest corporate Bitcoin holder, and Saylor himself has become known for his ardent belief in the asset. At an average price of $30,664, the firm has spent roughly $3.98 billion on its Bitcoin holdings.

The MicroStrategy announcement comes at a crucial time as the number one cryptocurrency has retraced by nearly 10% since Jun. 26. Bitcoin has had a rocky month, dipping below the key $20,000 psychological level for the first time since December 2020. Since topping $69,000 in November 2021, Bitcoin’s price has declined by more than 70%.

The Crypto Fear & Greed Index indicates that the ongoing market slump has created a state of “Extreme Fear” among market participants, given the threat of a steeper correction.

Bitcoin at Key Support

Bitcoin’s hourly chart shows that it has been consolidating within a parallel channel since Jun. 19. Every time Bitcoin has reached the channel’s upper boundary over the past 10 days, it has reversed to the lower boundary. It has then rebounded, which is consistent with the characteristics of a channel.

The price correction seen over the past three days has pushed Bitcoin to the channel’s lower trendline at $19,830. If this support level continues to hold, Bitcoin could rebound to the channel’s upper trendline at $21,740 or break out of this technical formation toward $23,660.

Source: TradingView

Although MicroStrategy has indicated once again that it has strong conviction in Bitcoin, it is unclear whether the asset can keep the $19,830 level as support. If it fails to hold the decisive level, it could trigger a bearish breakout. The parallel channel’s width added to the $19,830 level suggests that a breach of support could result in an 8.8% correction toward $18,070.

Thanks to Bitcoin’s months-long decline, the broader cryptocurrency market has taken a big hit. The global crypto market cap currently sits at $935 billion, around 67% of its $3 trillion peak.

Disclosure: At the time of writing, the author of this feature owned BTC and ETH.

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