Soon after MSTR added coins to the Treasury, Bitcoin clings to $30,000 | Christopher | Capital | June 2021
Soon after MicroStrategy announced another major Bitcoin bet, Bitcoin rebounded by 17% from Tuesday’s low. The company now holds 105,084 BTC and has announced plans to buy more bitcoins in the future.
At the same time, BTC/USD is at an important crossroads, and its choice will determine the fate of many people.
Let’s learn more.
MicroStrategy has purchased 105,084 Bitcoin ($489 million) from the proceeds from the sale of $500 million in senior bonds last week.
The US intelligence company added 13,000 bitcoins to its treasury through the $489 million raised by selling corporate bonds to investors, with an average purchase price of $37,617.
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Bitcoin is at a crossroads
Bitcoin broke through the last line of defense under $30,000 on Tuesday, but quickly recovered its losses and ticked 17% higher A few hours later.
At the time of writing, BTC/USD is trading at $34,640 and is trading in the second half of the range. Perpetual futures financing interest rates are still negative (Bitmex), which means that perpetual short traders are paying long traders. This is a positive development.
The pivot is located near $36,000, setting clear targets for traders who tend to be bullish. If buyers step in and the momentum catches up, a potential MTF (medium time frame) rollover at this level will open the door to continued range highs ($41,000).
To achieve this, buying pressure must be offset by sellers who have dominated the market since the May 19 decline. But all bad things will end.
Although there is no certainty, there are several signs that this rescue rebound may continue.
According to the above liquidation data, the bulls have been regressing since mid-June, but if we assume that BTC/USD is still fluctuating within a range, it is not unreasonable to expect the pendulum to swing in another way.
Another promising data point is the increase in retail interest, which has returned to its lowest level since the end of May. On average, the increase in spot trading volume is a sign of market recovery and also helps to curb the peak of clearing caused by futures trading activities.
On the other hand, if BTC/USD drops below the low of $28,800, a long-term bear market is likely to occur. In this case, the bulls will enter a dormant state until they become the last buyers again. Joke aside, for an unresolved market (in my opinion), losing the range low will be a nail in the coffin. All in all, Bitcoin is at a crossroads and a choice must be made between the fiery chasm of Doom Mountain or Weathertop, which is filled with sun-drenched and glittering pastures where bulls can find nutrition and much-needed respite.
All this is up in the air.
” Now is the time! Arhat Knight! You have taken the oath, now honor them all, swear to the lord and the land!“——Eomer to the great Satoshi warrior about 1559 BC.
See you next time.
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