Bitcoin bounces back thanks to MicroStrategy, but is still stuck below $30,000

Published 02/08/2023, 08:22
Updated 02/08/2023, 08:33
© Reuters
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Investing.com - After retreating for most of yesterday, marking a low of $28,663 (the lowest since 20 June), Bitcoin rebounded sharply in the evening to a high of $30,056, but the cryptocurrency was then quickly sent back below the key $30,000 threshold.

Remember that a widespread climate of risk aversion had penalised risky assets, including cryptocurrencies, yesterday, while the amorphous trend of recent days was beginning to weary short-term investors.

However, BTC received key support from major announcements by MicroStrategy (NASDAQ:MSTR), a company that is officially a software company, but whose business has largely been buying and holding Bitcoin in recent years.

MicroStrategy confirmed yesterday that it holds 152,800 bitcoins worth $4.4 billion, after acquiring 467 bitcoins in July.



The company also announced its position in the cryptocurrency is now in profit.

More importantly, according to an SEC filing, the company could raise $750 million by selling shares, most likely to buy more Bitcoin, which had a clear bullish impact on the cryptocurrency's price.

However, gains remained limited, while the e $30,000 threshold acted as a firm technical barrier.

Technical thresholds to watch for on Bitcoin

From a charting perspective, yesterday's BTC/USD low at $28.663 combines with the 100-day moving average at $28.523 to form immediate support for the crypto.

Daily Chart (BTC)

A break below this level would expose the next potential supports, namely the $28,000 and $27,000 levels, and the 200-day moving average at $26,770.

On the upside, a return above $30,000 would put the $31,000 threshold in sight, ahead of this year's record high of $31,800.

(Translated from French using DeepL)

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