- MicroStrategy buys additional $600 million in Bitcoin, total holdings worth $6.5 billion.
- Company’s stock surges 128% YTD, bolstering Bitcoin investment capacity.
- Bitcoin’s price and RSI rise, indicating strong market purchasing activity.
MicroStrategy, a software firm, has acquired an additional batch of Bitcoin
New Bitcoin Purchase for Saylor
Saylor has indicated that from November 1 to November 29, MicroStrategy acquired 16,130 BTC at an average cost of $36,785 each. He further pointed out that with this latest acquisition, the company’s total Bitcoin holdings are valued at approximately $6.50 billion.
In 2020, MicroStrategy adopted a strategy focused on Bitcoin, initiating their investment with a purchase of 21,454 BTC. The company faced significant scrutiny when its Bitcoin holdings experienced losses. Despite the critical public view, Saylor persisted in making further Bitcoin purchases.
However, this year, due to the performance of BTC, the unrealized profits from MicroStrategy’s Bitcoin investments have surpassed the $1 billion mark. Notably, there has also been a significant increase of 128% in the company’s stock on a Year-To-Date (YTD) basis, enhancing MicroStrategy’s buying capacity.
Usually, when Saylor makes such an announcement, the market reacts by selling. However, on this occasion, Bitcoin seems to not succumb to downward pressure. At the time of writing, the price of BTC has risen to $38,187.
Sellers Have Been Swept Away
The 4-hour chart for BTC/USD indicates an increase in the Relative Strength Index (RSI). On November 29, the RSI was recorded at 51.15. At that time, the price of BTC was under $38,000.
Therefore, the Relative Strength Index increase suggests that substantial purchasing activity has occurred in the market. If this purchasing activity persists, Bitcoin can trend towards $38,500.
Nonetheless, the viability of this prospective shift hinges on the backing at the $38,098 level. Should buyers continue accumulating purchase orders, sellers could be prevented from penetrating the support zone. The Chaikin Money Flow (CMF) is another metric that suggests a possible upward trend for Bitcoin.
As of this writing, the CMF has increased to $0.26. The CMF measures the buying or selling momentum over a given timeframe. A shift into negative values signifies that there is selling pressure. Conversely, a positive CMF value implies strong buying pressure. Consequently, BTC appears to have a greater chance of appreciating rather than experiencing a pullback.
Nonetheless, traders should exercise caution when considering initiating long positions. There is no assurance that BTC will avoid a downturn despite signals from indicators suggesting an upward trend; a substantial sell order can potentially interrupt this trajectory. Therefore, it is advisable to observe any notable changes for the present moment.
Disclaimer: The insights, perspectives, and data presented in this price analysis are published in good faith. Readers must conduct their own research due diligence. Any decision made by the reader is solely their responsibility, and Crypto Outlooks shall not be held responsible for any consequential or incidental harm or loss.
