Strategy buys 1550 BTC, but Bitcoin has a bigger problem – Here’s why!
Where does Bitcoin's price stand right now after Strategy's purchase?
Strategy is back to buying Bitcoin [BTC] after selling a small part of its holdings last week. Interesting timing, because long-term Bitcoin holders have been seeing much lower profits than before lately.
Needless to say, this puts Bitcoin in a tricky zone.
Strategy adds 1,550 BTC
According to former CEO Michael Saylor’s announcement, Strategy acquired 1,550 BTC for about $101 million. That takes its total Bitcoin reserves to 845,256 BTC.
The purchase came shortly after last week’s sale of 32 Bitcoin. This sale raised too many eyebrows because the company is widely known for steadily accumulating.
Alongside this new purchase, Strategy also increased its USD reserves by $100 million, bringing it to $1 billion.
LTH MVRV falls, long-term holder profits slow down
Again, the timing here is pretty notable because long-term holders have been feeling the heat.
Bitcoin’s Long-Term Holder MVRV ratio dropped to 1.26, according to data from Alphractal. This suggested that this group has been sitting on modest unrealized profits on average.
These readings usually come around difficult phases. In the past, the metric stayed low for weeks or even months before a clearer trend came about. So, this does not guarantee a breakout.
Bitcoin may be moving closer to a buying area, but the market still needs to confirm it.
Bitcoin holds near $63K
At press time, the price chart also revealed why the market is not out of the woods yet. Bitcoin was trading near $63K after a fall, and the short-term trend seemed heavy.
AMBCrypto previously reported that whale activity picked up near the $60K-zone. One large holder bought BTC near $59.7K and later moved it to Binance for a quick profit.
Here, it’s worth noting that quick whale profit-taking can create resistance even when Bitcoin attempts to recover.
The RSI indicated oversold conditions. While that can sometimes lead to a relief bounce, it does not confirm a full recovery.
The MACD was also negative, meaning that the bearish pace hadn’t gone away either.
Final Summary
- Strategy added 1,550 BTC worth $101 million.
- Bitcoin’s trend retained its weakness as the LTH MVRV fell to 1.26.
