14.05.202108:28 Forex Analysis & Reviews: MicroStrategy continues to buy Bitcoin

Bitcoin has fallen to the level of $47,000 and remains near this level, which is very important. In the illustration below, the entire technical picture can be seen. The upward trend is clearly visible, as it weakens (the upper line), and at some point there is a break in the lower trend line and a collapse. It is also clearly visible that the level of $47,000 was worked out twice and both times there were pinpoints of it. Now, the market and its participants need to make an urgent decision. Where is Bitcoin now? At the very beginning of its new fall like in 2013 and 2017? Or on attractive price values for new purchases? In the coming days, we will know the answer to this question. By the simplest logic, the current levels are very attractive for new purchases by large private and institutional investors. However, it is up to these investors to decide whether they are "attractive" or "unattractive". If they start buying the coin at current prices, the upward trend may recover. But it is possible that most investors will refuse to invest in a very risky and unstable asset in addition. No matter what anyone says, bitcoin is not like Apple stock. It may collapse down by 80-90%, as it has happened at least 2 times in its short history. Bitcoin is still an investment tool, and if it falls in price and no one can really explain why bitcoin should grow to $100,000 or to $1,000,000, then it starts to sell off. We still recommend that all traders do not forget about the Stop Loss on any cryptocurrency transactions. and also always carefully study technical analysis and do not trade on the basis of the forecast "bitcoin will grow to $100,000 in any case".

Meanwhile, the company MicroStrategy, which is already more known around the world because it owns almost 92 thousand bitcoin coins, and not because it is a serious software developer, continues to buy coins. This time, the company announced the purchase of another 271 coins worth $15 million. Thus, at the current exchange rate, the company owns coins worth about $4.5 billion. The head of the company, Michael Saylor, said that the average purchase of bitcoin is about $24,400, and the profit from these investments is already $2.4 billion. However, we would like to make an assumption here: the profit will be $2.4 billion if the company sells all its coins right now.

Technically, bitcoin crashed down on the 4-hour timeframe, but, like on the daily timeframe, there were specific technical prerequisites for this. Now, the most important thing for the "digital gold" is the level of $47,000. If the price consolidates below it, the downward movement will continue. We believe that a correction scenario is still more likely.