Bitcoin
MicroStrategy Buys Additional 11,930 BTC, Fibonacci Analysis Suggests $160K Bitcoin Price Spike
Bitcoin (BTC), the leading cryptocurrency, regained momentum, recovering from a weekly low of $64,000 to find support above $65,000, halting last week’s slide. downtrend. This price rally could be due to another significant investment round from business intelligence firm MicroStrategy, led by Bitcoin bull Michael Saylor.
The company on Thursday announced the acquisition of an additional 11,931 BTC valued at approximately $786.0 million, further solidifying its position as a major institutional holder of the digital asset.
MicroStrategy’s Bitcoin Holdings Rise to Nearly $15 Billion
MicroStrategy President and Co-Founder Michael Saylor revealed the latest acquisition in a post on social media. The company purchased 11,931 Bitcoins between April 27 and June 19, using convertible note resources and excess cash at an average price of $65,883 per Bitcoin.
Notably, the recent purchases increased MicroStrategy’s overall Bitcoin holdings to a whopping 226,331 BTC, acquired at a total cost of $8.3 billion, currently valued at approximately $14.9 billion.
Saylor’s interest in Bitcoin dates back to 2020, when he began buying the cryptocurrency as a hedge against inflation and an alternative to holding money. Since then, Bitcoin has seen substantial growth, appreciating around 600% since Saylor’s initial investments.
The recent purchase by MicroStrategy comes at a time when market sentiment towards Bitcoin is mixed. Santiment market intelligence platform reports that the community is “mostly scared” or disinterested as the price of Bitcoin fluctuates between $64,000 and $65,000.
However, Santiment suggests that BTC trader fatigue, combined with the whale accumulation exemplified by MicroStrategy’s latest acquisition, often leads to price drops “that reward the patient,” as seen in the image above.
Top of BTC cycle to reach new heights
Despite the current mixed sentiment in the market, most experts and analysts are predicting a cycle peak for Bitcoin beyond the current all-time highs. Market analyst Crypto Con recently used Fibonacci retracements to predict key conservative and less conservative potential cycle targets.
According to According to Crypto Con analysis, the 0.618 Fibonacci retracement level has proven to be reliable for previous Bitcoin cycle tops. Extension levels can be derived by working backwards from the bottom of the cycle to the top of the first move. The 2013 and 2017 cycle tops were predicted at 4.618, while the 2021 top was predicted at 5.618.
For the current cycle, the conservative target for the cycle top is $106,000, while the less conservative target is $161,000, according to Crypto Con.
Adding to the positive sentiment, wealth management firm Bernstein made bold predictions for the future price trajectory of Bitcoin. Despite arguments from bears that Bitcoin ETF trading is over and the first allocations were driven by retail investors, Bernstein maintains a different point of view.
The company emphasizes that Bitcoin ETFs are on the verge of approvals in major news agencies and large private banking platforms in the third or fourth quarter of this year. These potential approvals and institutional interest act as a catalyst for adoption.
Bernstein expects Bitcoin to reach a cycle high of approximately $200,000 by 2025, $500,000 by 2029, and a staggering $1 million by 2033. The firm says institutional investors are evaluating “net long” positions, indicating growing interest in cryptocurrency.
At the time of writing, BTC has limited its losses over the 7-day period to 3.6%, resulting in a current trading price of $65,170 for the largest cryptocurrency on the market.
Featured image of DALL-E, chart from TradingView.com