Key Takeaways:
- MicroStrategy reported it purchased 5,445 Bitcoin tokens.
- MSTR price spiked by 4%, but bearish pressure remained.
- Bitcoin price continued trading below $26,000
NEW DELHI (CoinChapter.com) — Software firm MicroStrategy (NASDAQ: MSTR) has purchased over $147 million worth of Bitcoin (BTC) since Aug. 2023.
In a regulatory filing, the Michael Saylor-led firm revealed that it bought approximately 5,445 BTC between Aug. 1 and Sept. 24.
As of September 24, 2023, MicroStrategy, together with its subsidiaries, held an aggregate of approximately 158,245 bitcoins, which were acquired at an aggregate purchase price of approximately $4.68 billion and an average purchase price of approximately $29,582 per bitcoin, inclusive of fees and expenses.
MicroStrategy stated in its filing
The move underscores MicroStrategy and Michael Saylor’s support for Bitcoin. The firm has been buying BTC tokens since March 2021. Furthermore, the latest purchase is the firm’s fifth BTC purchase in 2023.
The current worth of MicroStrategy’s BTC holdings is roughly $4.17 billion, a drop of over 12% from its aggregate purchase price.
MicroStrategy now has the second largest BTC holding among institutional investors, behind Grayscale, with 625,000 BTC in its Grayscale Bitcoin Trust.
MSTR Price Rallies After Report Of BTC Purchase Hit The Wires
Meanwhile, MSTR price rallied by nearly 4% to a daily high of $327.6 on Sept. 25, likely reacting to the news of Microstrategy’s latest addition to its BTC holdings.
However, the price spike failed to prevent the stock’s 20-day EMA (red wave) from needling below its 100-day EMA (blue wave) to form a death cross.
The death cross usually represents a negative market sentiment against an asset. But MicroStrategy stocks price shrugged off the bearish indicator to continue rallying. If the rally continues, MSTR price might rise to the resistance near $343, where the death cross EMAs form a resistance confluence.
Breaking and consolidating above the immediate resistance might help MSTR price target the resistance near $376, which would see MicroStrategy stocks price recover most of its losses since Aug. 29, earlier this year.
Conversely, if MSTR price fails to rally, MicroStrategy’s share price might drop to the support near $304. Moreover, breaching the immediate support level might force MSTR price test the support near $272 before recovering.
The RSI for MSTR remained neutral, with a score of 36.71 on the daily charts.
Bitcoin Price Remains Comatose
Bitcoin price, however, remained mostly immune to the news of MicroStrategy buying BTC tokens. However, bulls continue to defend the $26,000 price tag. On Sept. 25, BTC price dropped to $25,977 before bulls pushed the token’s price nearly 1.8% to a daily high of $26,436.
Bulls must break above the 20-day EMA (red wave) dynamic resistance before rallying to the 100-day EMA (blue wave) resistance near $27,400. Breaking and consolidating above the immediate resistance might help Bitcoin price rally to the resistance near $29,000 before retreating.
Conversely, if BTC price fails to rally, the token might drop to the support near $25,500. Moreover, breaching the immediate support level would force out of the multi-month ascending channel, prompting a drop to the support near $24,360 before recovering.
The RSI for BTC remained neutral, with a score of 47.11 on the daily charts.
