Bitcoin reached an all-time high of $108,365 on December 17, but has been in a correction since then. Around 11 PM last night (30th), selling pressure suddenly intensified, causing Bitcoin to drop below $92,000, with a low of $91,540.
Although there was a slight rebound to $95,000 afterward, it quickly began to decline again. As of the time of writing, Bitcoin is at $92,192, having dropped 1.45% in the past 24 hours.
MicroStrategy increases Bitcoin holdings by $209 million.
Despite Bitcoin's continued downward trend, MicroStrategy founder Michael Saylor announced last night that MicroStrategy has increased its Bitcoin holdings again. This time, they purchased 2,138 BTC at a price of $209 million, with an average price of approximately $97,837, showing no concern over whether Bitcoin has reached a temporary high.
According to the latest bitcointreasuries data, after this increase, MicroStrategy's Bitcoin holdings have reached 446,400 BTC, with a total investment cost of $27.9 billion and an unrealized profit and loss of approximately $13 billion. It is noteworthy that this year, MicroStrategy has already invested $22 billion to purchase 257,250 BTC.
Analysts: Net Bitcoin flow from exchanges hits a record low.
Regarding whether Bitcoin will continue to fluctuate and fall below $90,000, cryptocurrency analyst Axel Adler believes that despite recent corrections leading investors to feel uncertain about the market's future, a positive signal is emerging—Bitcoin's net flow to reserve ratio has hit a new low.
This indicator shows that the amount of Bitcoin flowing out of exchanges has exceeded the amount flowing in, meaning that investors are now more inclined to transfer Bitcoin to cold wallets for long-term holding rather than active trading. This is usually a bullish signal, indicating potential for price increases.
This analyst also mentioned that historically, this indicator reached a significant peak at the end of the 2022 bear market, at which point many smart money began transferring Bitcoin to wallets for storage, which was also a bottom signal for the bear market, paving the way for the subsequent bull market.
So he said, looking at the current market situation, this indicator shows some similar signs. Although the market has been quite volatile recently, the difficulty for Bitcoin to break through $100,000 remains high. However, as the reserves on exchanges gradually decrease, the upward momentum in the market is slowly accumulating, which may support future price increases.
The key support for Bitcoin is around $90,000.
Although he remains optimistic about Bitcoin's long-term trend, he also warned that if Bitcoin cannot break through $100,000 in the short term, it may continue to decline due to a lack of sufficient upward momentum.
The most important support level is at $90,000. If strong support is found at this level, Bitcoin may see a new wave of increase. However, if it falls below $90,000, there could be a deeper correction, and the entire crypto market may experience a more severe decline.