Despite the recent market collapse, MicroStrategy has stated that it is committed to growing its Bitcoin holdings. According to the business intelligence firm, which disclosed on Wednesday that it had purchased an additional 480 Bitcoin, the largest cryptocurrency is currently trading 71% below its all-time high.
In a regulatory filing made public on Wednesday, Michael Saylor’s data analytics company stated it had acquired an extra 480 Bitcoin at an average cost of $20,817 between May 3 and June 28. About $10 million was spent by MicroStrategy on the coins.
With the most recent acquisition, MicroStrategy now owns about 129,699 Bitcoins, with an average cost basis of $30,664. Saylor has gained notoriety for his passionate confidence in the commodity, and MicroStrategy is the largest business Bitcoin holder in the world. The company has invested nearly $3.98 billion in its Bitcoin assets, at an average cost of $30,664.
The timing of the MicroStrategy release is critical given that the top cryptocurrency has declined by around 10% since June 26. Bitcoin has had a difficult month, falling for the first time since December 2020 below the crucial $20,000 psychological mark. Since reaching a high of $69,000 in November 2021, the price of Bitcoin has dropped by more than 70%.
According to the Crypto Fear & Greed Index, the current market downturn has made market players “Extremely Fearful” due to the possibility of a more severe correction.
On its hourly chart, Bitcoin can be seen consolidating since June 19 within a parallel channel. Over the previous 10 days, Bitcoin has reverted to the lower border each time it has crossed the upper boundary of the channel. After that, it rebounded, which is consistent with a channel’s features.
Even though MicroStrategy has reiterated its strong belief in Bitcoin, it is uncertain whether the asset will be able to maintain the $19,830 level as support. A bearish breakout can occur if it is unable to hold the key level. When the $19,830 level is taken into account, the width of the parallel channel shows that an 8.8% correction toward $18,070 could occur if the support is broken.
Read more: Crypto Market crash: Microstrategy and Tesla faces $1.4 billion down in Bitcoin investment
