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 increased, 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 our press time, Bitcoin is reported at $92,192, down 1.45% in the past 24 hours.
MicroStrategy increases its Bitcoin holdings by $209 million.
Despite Bitcoin's persistent decline, Michael Saylor, the founder of MicroStrategy, announced last night that MicroStrategy has increased its Bitcoin holdings again. This time they purchased 2,138 BTC for $209 million, with an average price of about $97,837, showing no concern that Bitcoin may have reached a temporary peak.
According to the latest data from bitcointreasuries, after this increase, MicroStrategy's Bitcoin holdings have reached 446,400 BTC, with a total investment cost of $27.9 billion, and a floating profit and loss of about $13 billion. Notably, MicroStrategy has already invested $22 billion this year to purchase 257,250 BTC.
Analyst: The net flow of Bitcoin from exchanges and the reserve ratio hit a new low.
Regarding whether Bitcoin will continue to fluctuate and fall below $90,000, cryptocurrency analyst Axel Adler believes that despite the recent correction making investors uncertain about the future of the market, 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, indicating 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, suggesting that prices may have upward potential.
This analyst also mentioned that historically, this indicator reached a significant peak at the end of the 2022 bear market, when a lot of smart money began to transfer Bitcoin to wallets for storage. This was also a signal for the bottom of 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 of Bitcoin breaking through $100,000 remains high, but as the reserves on exchanges gradually decrease, the market's upward momentum is slowly accumulating, which may support future increases.
Bitcoin's key support 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 experience a new wave of increases; if it falls below $90,000, there may be a deeper correction, and the entire crypto market may experience a more severe decline.