Cryptocurrency Analysis

[IFX_Selena]

MicroStrategy acquired 4000 more bitcoins



We have repeatedly said that the last round of bitcoin's growth looks very strange. The cryptocurrency has grown by almost $21,000 in total over the past few weeks, despite the fact that there were no good reasons and fundamental factors for this. Moreover, this growth was very systematic and unhurried. Earlier, bitcoin could pass 5-6 thousand dollars a day based on the statements of Elon Musk or other news of an absolute "hype" nature, but now in recent weeks, the growth has been exceptionally calm. Perhaps Bitcoin is really changing and becoming more stable and less volatile. However, this does not mean at all that the exchange rate is now taken at $100,000 or higher, as many crypto experts like to predict. At this time, the quotes of the first cryptocurrency have again approached the ascending trend line on the 4-hour timeframe, so the fate of the cryptocurrency for the next few days and weeks will be decided in the coming hours. If the overcoming of the trendline happens, it will significantly increase the probability of a new and powerful drop of bitcoin. It can be recalled that we are inclined to the version of the return of BTC to the level of $29,700 and the subsequent fall even lower. If there is a rebound from the trend line, then bitcoin will remain in a bullish trend. So far, it should be noted that buyers have not been able to bring bitcoin to its next target level of $51,350 this time. From our point of view, the factor of hasty purchase of coins by investors, until the new tax legislation is introduced in the United States, has already been recouped with a vengeance. It's time for it to go down.

However, not everyone thinks so. For example, the company MicroStrategy, which is now associated with bitcoin purchases, has purchased another 3,900 coins worth $177 million. This was stated by the company's CEO Michael Saylor. He also clarified that now his company is the owner of 109 thousand bitcoin coins worth about $2.9 billion. Thus, institutional investors also support "digital gold", but for some reason, reports about investments in bitcoin come mainly from Elon Musk and MicroStrategy. Of course, other large companies also buy bitcoin or various derivatives based on bitcoin, but we hear mainly about Tesla, SpaceX, and MicroStrategy...



Technically, bitcoin continues to be in an upward movement on the 4-hour timeframe, but it has adjusted to the level of $47,500. Thus, the next target for the growth of the first cryptocurrency remains the level of $51,350 and the price can follow this target if there is a rebound from the level of $47,500 or the trend line. It is advisable to sell bitcoin as soon as the price is fixed below the ascending trend line. The first target in this case will be the level of $43,852.





Paolo Greco
Analytical expert of InstaForex
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