Crypto Market Outlook Bitcoin: Big Accumulation?

By: Joshua Aldio, Business Associate

Disclaimer: Tokenomy does not provide any investment, financial, accounting, valuation, tax, legal or other professional advice. The opinions expressed in the article is the author’s personal view only. All decisions to buy, sell or trade any Digital Asset using the Services are made solely by you, and you are fully responsible for all such decisions.

Michael Saylor’s company MicroStrategy has taken advantage of the currently low bitcoin (BTC) price by adding another 480 BTC to its coffers. The bitcoin purchase, worth around USD 10 million, was made at an average price of USD 20,817 per coin, above the market price at the time of writing (12:20 UTC) of around USD 20,100, Saylor said.

In total, MicroStrategy – a US-listed enterprise software firm that Saylor has turned into a quasi-Bitcoin exchange-traded fund (ETF) – now holds 129,699 BTC (USD 2.6bn), purchased at an average price of USD 30,664.

Commenting on the announcement, members of the Bitcoin community pointed out that MicroStrategy is buying more bitcoin even as some have speculated that the company would face margin calls if the BTC price falls below USD 21,000.

Michael Saylor himself has previously attempted to put these speculations to rest by saying that BTC would need to fall to as low as USD 3,562 before a loan it has with Silvergate Bank would require additional collateral.

The business intelligence firm is scooping up Bitcoin during a period of extreme market volatility. On Wednesday, Bitcoin’s price briefly dipped below $20,000, which is more than $10,000 lower than the company’s average acquisition price. The company’s BTC stash is currently sitting at a net unrealized loss of nearly $1.4 billion, according to data provided by Bitcoin Treasuries.

Michael Saylor, the firm’s CEO, remains bullish on Bitcoin’s long-term prospects. Earlier this month, he told his 2.5 million Twitter followers that the firm plans to “HODL through adversity” and has no plans to offload its holdings. The bullish reaffirmation came amid rumors that the company risked a margin call if Bitcoin’s price fell below $21,000. According to Saylor, the margin call rumor is a “nothing issue.”

MicroStrategy reported first-quarter revenues of $119.3 million. Gross profit for the quarter was $93.6 million. 

Bitcoin Technical Analysis

We can see as the chart above, Bitcoin is moving in heavy sideways by ranging at $20,000 with small candlesticks that indicating the bearish movement is not as strong as in the past weeks. We may have the perspective that BTC is doing price accumulation at $20,000 and expecting a bullish move in the future.

As the analysis above, we may see a ‘bumpy-ride’ of Bitcoin prices in the upcoming weeks and finishing the accumulation process before the back to bullish cycle. 

Trading Call : Speculative/DCA – Buy on Weakness at $20,000

To Holding BTC Right Now

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