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  • MicroStrategy Follows El Salvador’s Lead As It Buys Bitcoin Dip

    MicroStrategy Follows El Salvador’s Lead As It Buys Bitcoin Dip

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    For those who can afford it, the recent dips in Bitcoin price have been nothing more than an opportunity to buy the digital asset at a discounted price. This has certainly been the case for El Salvador and now MicroStrategy, as both these entities have moved swiftly to take advantage of the price dip to increase their holdings.

    El Salvador had quickly snapped up another 100 BTC when the price had fallen to $54,000, with the president once again saying that the country got the coins at a discount. MicroStrategy, the publicly traded firm that holds the largest amount of bitcoin on its balance sheet, followed in the footsteps of El Salvador. This time buying up $414 million worth of BTC.

    Related Reading | Report Shows Institutional Investors Are Abandoning Bitcoin For Altcoins

    MicroStrategy Deepens Bitcoin Bet

    MicroStrategy has renewed its promise to keep adding bitcoin to its balance sheet with its latest purchase. The firm which is headed by Bitcoin maximalist Michael Saylor announced that it had bought even more bitcoins to add to its already impressive holdings. MicroStrategy’s latest purchase consisted of a $414 million buy, which amounted to 7,002 BTC added to its balance.

    This recent purchase brought the total of MicroStrategy’s bitcoin holdings to a whooping 121,044 coins. The firm bought the digital asset at an average of $59,187 per coin, well below its record $69K high at the beginning of November.

    Bitcoin price chart from TradingView.com

    BTC recovers above $57K | Source: BTCUSD on TradingView.coms

    MicroStrategy has gradually filled its coffers with bitcoin and has so far spent approximately $3.57 billion in total. Despite bitcoin’s drop from its all-time high, the firm continues to remain in profit with an average price of $29,534 per bitcoin.

    Companies Betting Big On Bitcoin

    MicroStrategy is not the only company that has thrown its hat in the ring with bitcoin, although it holds the largest volume of all publicly traded companies. Electric vehicle maker Tesla had also announced that it holds bitcoin on its balance sheet. Tesla which is headed by another Bitcoin maximalist in the person of Elon Musk holds 48,000 BTC on its balance sheets, currently worth around $2.99 billion.

    Related Reading | El Salvador Buys Bitcoin Dip As Omicron Variant Ravages Market

    Galaxy Digital is headed by Mike Novogratz, an outspoken crypto bull that has reiterated the potential of bitcoin numerous times. The firm also holds16,402 bitcoins on its balance sheet, $956.69 million in today’s value.

    Square Inc. headed by Twitter boss, Jack Dorsey holds 8,027 BTC, while Marathon Patent Group holds around $280.7 million in bitcoin (4,813 BTC).

    A recurring theme around all these companies is that no matter when they entered the market, they are all in profit by at least 100% of the value the bitcoins cost at the time of purchase.

    Featured image from Forbes, chart from TradingView.com



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  • 3 reasons why traders want to buy the Bitcoin price dip to $58.5K

    3 reasons why traders want to buy the Bitcoin price dip to $58.5K

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    Cryptocurrency traders are scrambling and scratching their heads after a sharp drop in Bitcoin (BTC) price triggered a market-wide sell-off that has nearly every token in the top-200 flashing red today. 

    Data from Cointelegraph Markets Pro and TradingView shows that Bitcoin price dropped as low as $58,609 before finding buyers who bid the price back to $60,500.

    BTC/USDT 4-hour chart. Source: TradingView

    Here’s a look at what some traders and market analysts are saying about this recent downside move and whether or not it is simply a shakeout or a sign that darker clouds are gathering.

    BTC is exploring support and resistance levels

    Insight into BTC’s daily price action was offered by options trader and pseudonymous Twitter user ‘John Wick’, who posted the following chart highlighting some important support and resistance zones.

    BTC/USD 1-day chart. Source: Twitter

    Wick said that Bitcoin is just exploring the resistance zone around its new all-time high and he highlighted the possibility of a drop into the $58,000 to $59,500 range, similar to the move that was seen in the early trading hours on Nov. 15.

    Wick said,

    “We are simply testing the range low of the resistance zone. If we break it on the close may test support zone.”

    Similar observations were made by market analyst and pseudonymous Twitter user ‘Rekt Capital’, who posted the following tweet that zoomed out and looked at the price action for BTC on the monthly chart.

    As mentioned by the analyst, the price action on Nov. 16 was a retest of the monthly support/resistance level at $58,700. Now that BTC has successfully rebounded near the monthly $61,000 level, a bullish case can be made in the weeks ahead if the price manages to close the month above the level.

    There’s still a chance that $54,000 will be hit

    A level-headed view of the latest price action was provided by market analyst and Cointelegraph contributor Michaël van de Poppe, who posted the following chart of a possible BTC price trajectory over the next week.

    BTC/USD 1-hour chart. Source: Twitter

    van de Poppe said,

    “So far, so good on Bitcoin. Bouncing from support, but still needing to break some crucial areas here, which didn’t happen yet. Let’s go for that first. $63,000 is important. No breakout there [leads to] further downwards momentum.”

    According to the chart provided by van de Poppe, if the downward momentum continues, the price of BTC could drop to its next support level at $54,000.

    Related: Bitcoin stages ‘picture-perfect rebound’ at $58.5K as crypto liquidations top $875M

    Fractal patterns suggest an approaching price rally

    Crypto Twitter analyst ‘Allen Au’ posted the following side-by-side charts of Bitcoin from 2013, 2017 and 2021 in response to concerns about $69,000 being the cycle peak.

    BTC/USD 1-day charts from 2013, 2017 and 2021. Source: Twitter

    According to the analyst, the latest downturn is not the cycle top, but was in fact the Wave 6 move seen in previous cycles. This means that “if its low is in, BTC could be onto Wave 7 soon!”

    Should the outlined wave sequence play out, then a Wave 5 peak could be $69,000, a Wave 6 low near $58,600 with the potential to drop as low as $53,000 and a cycle peak somewhere between $190,000 and $260,000 happening sometime in December 2021.

    The overall cryptocurrency market cap now stands at $2.651 trillion and Bitcoin’s dominance rate is 43.2%.

    The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.