After BTC rebounded in the early morning, it quickly rose to the 30,000 mark at 7 a.m. and then fell back again. MicroStrategy announced that it would sell stocks and continue to buy BTC, which attracted market attention, but the true meaning of this move is still uncertain.
MicroStrategy plans to sell 750 million shares to buy Bitcoin, and many people see this news as a positive factor. The company is a technology company that has been relatively active in the crypto market in recent years and currently holds 150,000 Bitcoins. MicroStrategy lost about $30 million in the second quarter due to the BTC market pullback. If the company continues to buy BTC and drive the overall trend, this loss may turn into profit in the short term. However, it should be noted that the increase in BTC prices may also be to neutralize costs and ship. In addition, it cannot be ruled out that other capital may target MicroStrategy, and they may raise prices to ship to MicroStrategy. This is just a guess and needs to be cautious.
From the technical and news perspectives, bulls dominate in the short term, and MicroStrategy's plan to buy BTC is also conducive to the market's short-term enthusiasm and price increases. However, it should be noted that corporate purchases may not be enough to define the turnaround of the entire market. The sentiment of retail investors in the market is unlikely to return to the market quickly because of the purchase of a certain company, which requires calm treatment. From the perspective of trading volume, the morning's pull-up trading volume was relatively small in the 29,000-30,000 range, indicating that the market did not pay too much attention to this pull-up. This pull-up seems to be premeditated. From the perspective of the entire market, although many altcoins showed a general rise, the core Ethereum, BCH, and LTC, which was favorable today, did not follow the rise, but fell instead. This may mean that market funds are limited. If the market picks up as a whole, altcoins such as Ethereum may make up for the rise, but at present, the increase is not obvious. Overall, the bullish factors come from the MicroStrategy purchase plan on the technical and news sides. However, the bullish factors may lack sustainability and extension, while the bearish factors still exist. Therefore, I am still bearish in the short term.
In terms of trading strategy, the current strategy is still based on high-altitude trading. It is recommended to cover positions when the market rebounds. It is necessary to pay attention to the small support of 29,500 to prevent a rebound after touching the support. At the same time, the defense point is above 30,000 to prevent a spike in the market.
For spot trading, although there is a short-term FOMO sentiment in the market, the rise of many altcoins is mainly affected by the support robots rather than the actual market sentiment. It is recommended to make a decision after the market stabilizes.