In the ever-changing cryptocurrency space, Bitcoin (BTC) has maintained its dominant position and increased by over 0.50%, reaching $26,133 on Sunday. This is likely due to the support at $26,000, which appears to have successfully prevented further losses.
MicroStrategy Inc., the major Bitcoin holder, has not been spared from the recent drop in Bitcoin’s price, which has caused an estimated $600 million in unrealized losses. The software firm had invested $4.5 billion to acquire more than 150,000 Bitcoins, at an average cost of $29,970 per Bitcoin. This 11% decline from August 16’s peak of $29,000 marks MicroStrategy’s first loss since June.
Despite this, the company, under the leadership of its staunch Bitcoin supporter Michael Saylor, continues to remain firm in its decision to hold their Bitcoin holdings. MicroStrategy’s stock (MSTR) has risen 132% in the year-to-date, though it has dipped 14.49% in the past five days, according to Tradingview data.
Furthermore, the broader market trend has seen a decrease of 10% in Bitcoin holders’ profits, with the percentage of profitable supply falling from 73% to 60% in a week, as per Glassnode data. These significant unrealized losses may lead to increased market volatility and could have a short-term effect on Bitcoin’s valuation dynamics.
The US Dollar Index (DXY), which measures the value of the US dollar against a basket of six major currencies, had a 0.13% drop at the end of the week. This bearish USD may have contributed to the improved movement of BTC/USD on the weekend.
Analyzing the four-hour timeframe, Bitcoin has displayed signs of “Three Black Crows” candlesticks, suggesting a strong bearish sentiment in the market. The Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) oscillators have entered the oversold region, reinforcing the bearish dominance. The 50-day Exponential Moving Average (EMA) at $27,300 has been influential, with recent candle closures confirming sustained bearish momentum.
The immediate resistance is at $26,200, although a bearish engulfing candlestick and two-day candle pattern below this level point to ongoing bearish pressure. A decline below $25,200 could indicate the potential for deeper losses, possibly reaching as low as $24,800. On the other hand, surpassing the $26,200 level could lead to targeting the resistance at $26,800, with further gains potentially pushing BTC’s price to $27,300 and eventually $27,600.
To stay up-to-date with the rapidly evolving world of digital assets, browse our selection of the top 15 cryptocurrencies to watch in 2023. This list has been compiled by industry experts from Industry Talk and Cryptonews, providing valuable insights and professional recommendations.
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