- MicroStrategy increased its Bitcoin holdings to around $6.5 billion.
- BTC’s price increased beyond $38,000, contrary to market expectations.
- The coin value can hit $38,500 if the buying momentum continues.
Software company MicroStrategy has purchased another round of Bitcoin (BTC) valued at around $600 million, according to its chairman, Michael Saylor. Saylor made this known in a post on X (formerly Twitter) on November 30.
Another BTC purchase for Saylor
According to Saylor, MicroStrategy purchased 16,130 BTC between November 1 and 29 at an average price of $36,785. He also noted that the recent procurement means the firm now holds about $6.50 billion worth of Bitcoin.
MicroStrategy embraced the Bitcoin strategy in 2020, starting with a 21,454 BTC purchase in the same year. The firm has also come under intense criticism as its portfolio languished in losses for a while. But irrespective of public opinion, Saylor continued to activate the buy button.
But this year, thanks to BTC’s performance, MicroStrategy’s Bitcoin holdings crossed $1 billion in unrealized profits. Interestingly, the company’s stock has also had an impressive 128% hike on a Year-To-Date (YTD) basis, giving MicroStrategy more purchasing power.
Typically, the market takes Saylor’s announcement as a signal to sell. But this time, it does not look like Bitcoin is ready to give in to bears. As of this writing, BTC’s price has increased to $38,187.
Sellers Have Been Wiped Out
According to the BTC/USD 4-hour chart, there has been a resurgence in the Relative Strength Index (RSI). Previously, on November 29, the RSI reading was 51.15. During this period, BTC’s price was trading below $38,000.
So, the jump in the RSI implies that there has been some significant buying in the market. Should the buying momentum continue, then BTC has the potential to move in the direction of $38,500.
However, this potential move would also depend on the support at $38,098. If bulls keep raking in buy orders, bears might be unable to break down the support area. Another indicator supporting a Bitcoin uptrend is the Chaikin Money Flow (CMF).
At the time of writing, the CMF had risen to $0.26. The CMF indicates buying or selling pressure within a specific period. A move into the negative territory indicates selling pressure. On the other hand, the CMF reading being positive suggests good buying pressure. Therefore, BTC has more upside potential than the possibility of a retracement.
However, traders may need to be careful about opening long positions. As it stands, there is no confirmation that BTC would evade a reversal. Although indicators signaled an uptrend, a large sell order could halt the direction. So, it is better to monitor any significant movement for the time being.
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