The price of Bitcoin BTC 2.14% has recovered from its losses. Is now hovering around the $44,000 mark. The 4 hour RSI indicator, for Bitcoin has dropped to 30 indicating oversold conditions. This combined with its proximity to the M200 level makes it a favorable time to consider buying Bitcoin. In fact it appears to be a opportunity compared to December 10th.
Although the price of Bitcoin on December 10th was still some distance away from the M200 level this time it is closer after experiencing oversold conditions. This suggests a bottom and presents another chance for a V shaped rebound. If there is decline by December 18th after the RSI reaches 30 it may present a short term buying opportunity.
However eventually the RSI rebounded at 37. Similar situations can be observed with indicators like trading volume well. There was a dip below the M200 level yesterday. The RSI reached its lowest point. These factors indicate demand for a rebound in Bitcoins price. Whenever the price is close to moving averages. If the RSI drops to or below 30 it should be considered as one of the best opportunities for short term buying.
Course implementing a stop loss strategy is essential, in cases. Based on the rebound intensity it seems that Ethereums recovery is not as strong, as Bitcoins. However during the decline Ethereum ETH 2.02% experienced a drop compared to Bitcoin. The current price of Ethereum is considered overbought which makes it unfavorable for short term trading. It’s not advisable to chase after prices.
If we focus on the 4 hour chart both Bitcoin and Ethereum presented three buying opportunities in December. Paying attention during these times is crucial. These instances indicate signals of recovery compared to most of December. Although Ethereum has tested the M200 moving average consecutively for the three days the best time to buy was when the RSI reached its point at 30.
Furthermore there has been growth in three Layer 2 solutions with Optimism playing a role. Two cryptocurrency projects that have recently gained attention are Arbitrum and Polygon MATIC 1.98%. Apart from Arbitrum two other projects also reached highs. Looking at the liquidation heat map Bitcoins price has risen rapidly. Has caused many short positions to be closed out. It is particularly noteworthy that $43,200 appears to be a level of support or resistance, for Bitcoin. Recently MicroStrategy has also faced losses due, to sell offs.
At the moment the immediate target price for Bitcoin is set at $44,000. It is projected that there will be resistance at this level.
Over the 12 hours MicroStrategy again acquired 14,620 Bitcoins with an average purchase price of $42,110. This resulted in an expenditure of $600 million. MicroStrategys total Bitcoin holdings now stand at around 189,150 Bitcoins, which accounts for 0.9% of the Bitcoin supply. Remarkably their holdings now rival those of the U.S. Government itself.
Reports indicate that the U.S. Government currently possesses 207,189 Bitcoins in its reserves. Michael Sailor, the founder of MicroStrategy strongly advocates for Bitcoin as an reliable hedge against inflation. Thanks to their approach to Bitcoin investments and strategic decisions made by MicroStrategy leaderships they have amassed profits worth over $2.2 billion while also experiencing a surge in their stock performance.
As a company with holdings on its balance sheet MicroStrategy far surpasses other publicly traded companies in terms of cryptocurrency ownership. Their heavy investment in Bitcoin during 2023 paid off handsomely as it led to an increase of over 350%, in their stock price.
MicroStrategy and its subsidiaries currently hold 189,150 Bitcoins, which were acquired at a cost of, around $5.9 billion. The average purchase price per Bitcoin was $31,168. This significant investment has garnered attention from analysts who see it as a leverage move. To fund their purchases the company relies on term low interest debt and equity issuances—a financial strategy that reflects their preference for investing in liquid assets immune to supply inflation rather than fiat currencies that steadily depreciate. MicroStrategys core business activities revolve around business intelligence, mobile software and cloud based services with its primary product being a data analysis platform.
The fluctuating price of Bitcoin and the volatility in the cryptocurrency market directly impact the companys statements. Despite challenging conditions and a bearish trend in the crypto industry Bitcoin prices experienced growth of over 160% in 2023—allowing MicroStrategy to continue generating value. While El Salvador also demonstrates an affinity for Bitcoin as a company or country their purchasing strategy differs from that of MicroStrategy. It is evident, from MicroStrategys track record that they employ a Dollar Cost Averaging (DCA) strategy; regardless of Bitcoins price fluctuations they consistently make predetermined quantity based purchases while effectively managing costs.
El Salvador stands out for its approach. Upon entering the market they found themselves in a bit of a predicament waiting for Bitcoin to experience a drop before considering any purchases.