Michael Saylor, one of the main supporters of Bitcoin, recently shared his opinions on the market fluctuations of the queen of crypto.
In this analysis, Saylor explores the causes of volatility, its impacts on investors, and the strategies to deal with Bitcoin fluctuations.
Let’s see all the details below.
Michael Saylor’s point of view on the market volatility of Bitcoin crypto
As anticipated, in recent days, the cryptocurrency market has shown significant volatility, characterized by continuous ups and downs.
In this difficult context, Michael Saylor, founder and Chairman of MicroStrategy, and veteran trader Peter Brandt have expressed confidence in Bitcoin (BTC).
On July 7, 2024, Michael Saylor posted on X (formerly Twitter) stating that “Bitcoin is designed to keep winning.”
This message underscores Saylor’s belief that Bitcoin is destined to increase in value over time, regardless of the current market conditions.
He also accompanied his post with an image comparing the performance of BTC with other asset classes such as gold and silver over the course of the year.
At the same time, the experienced trader Peter Brandt shared an analysis on X in which he identified a bull pattern in Bitcoin, which he called “Foot Shot”.
Brandt has described this pattern as a short-term buying signal, attracting the attention of many investors and traders in a moment of uncertainty.
Technical analysis of Bitcoin and crucial levels
Currently, technical analysis indicates a bear phase for Bitcoin, with the price facing resistance from the 200-day exponential moving average (EMA) around $58,000.
This resistance could represent a significant obstacle for BTC until it manages to close a candle above $58,500.
Despite the strong resistance, the relative strength index (RSI) is in an oversold area and is forming a bullish divergence, suggesting a potential recovery.
If BTC manages to close a daily candle above $58,000, it could reach the level of $60,500. According to CoinGlass, this movement could lead to the liquidation of nearly 2.4 billion dollars of short positions.
In the last few hours, the open interest (OI) of Bitcoin has increased by 1.4%, signaling a renewed interest from investors and traders.
At the moment, BTC is trading near $55,000. The trading volume has decreased by 37% in the same period, indicating a lower participation of investors and traders.
Over a longer period, Bitcoin has recorded a loss of 6% in the last 7 days and has lost over 20% of its value in the last month, dropping from $71,300 to $57,800.
Despite these fluctuations, the long-term prospects for Bitcoin remain a subject of discussion and analysis by industry experts.
Metaplanet boosts its Bitcoin reserves with a new purchase
Metaplanet, a company listed on the Tokyo Stock Exchange often compared to MicroStrategy, has recently increased its reserves of Bitcoin with the purchase of an additional 42.47 BTC.
This for a value of approximately 400 million Japanese yen (about 2.3 million dollars). The company announced this move in a recent statement.
This represents the fifth purchase of Bitcoin by Metaplanet in the last four months. Thus bringing the total of its holdings to over 203 BTC, valued at approximately 2 billion yen (over 11 million dollars).
According to Metaplanet data, the average purchase price for Bitcoin is around 58,500 dollars.
The previous purchases of Metaplanet were made on April 23, May 10, June 10, and July 1. After the third purchase, the company’s shares recorded an increase of 10%.
Specialized in hotel and real estate development, Metaplanet has recently oriented its strategy towards investing in Bitcoin, using it as a reserve asset to face economic challenges in Japan.
This strategic change reflects the practices of other large companies like MicroStrategy, which use Bitcoin as a hedge against the weakening of the yen and economic instability.
As of July 7, globally listed companies collectively hold 324,295 BTC. In particular, MicroStrategy is at the forefront with 226,331 BTC, which represents more than half of its market capitalization, as reported by BitcoinTreasuries.net.