The Bitcoin ($BTC) reversal just got deeper. At one point as low as $92,350, the $BTC price is currently hovering just above this. Is Bitcoin going to go to much lower levels? Is the bull market over? Or, is this just a standard reversal before heading back up to take out the $100,000 price level?
MicroStrategy buys big
MicroStrategy has acquired 55,500 BTC for ~$5.4 billion at ~$97,862 per #bitcoin and has achieved BTC Yield of 35.2% QTD and 59.3% YTD. As of 11/24/2024, we hodl 386,700 $BTC acquired for ~$21.9 billion at ~$56,761 per bitcoin. $MSTR https://t.co/79ExzXk4UM
— Michael Saylor⚡️ (@saylor) November 25, 2024
As the tussle between Bitcoin bulls and bears continues to play out, the biggest $BTC purchase yet by MicroStrategy has just taken place. Michael Saylor announced the purchase by MicroStrategy of 55,500 $BTC, worth around $5.4 billion at time of buying. He also boasted that his company had achieved a BTC yield of 59.3% YTD. MicroStrategy stock ($MSTR) is currently at $403, down from $540 only last week.
Ethereum ETFs get inflow day as Bitcoin ETFs record outflows
While that huge amount of $BTC leaves the market, there’s a slight change in the U.S. Spot Bitcoin ETFs. The five recent trading days of inflows were interrupted by a 4.44K BTC outflow on Monday. This came at the same time as institutional investors bought a total of $2.83 million in the U.S. Spot Ethereum ETF.
$BTC price rolls over. Will it go further down?
Source: TradingView
The 8-hour chart for the $BTC price gives a feast of information. It shows how $BTC failed to exit the top of the bull flag, and then rolled over, fell through the bottom of the flag, and ended up sinking below the ascending trendline.
It also looks like the price was in an ascending channel. This broke down as well, as is generally the case with these patterns. The price has met the measured move out of the bull flag channel, but still hasn’t gone down to the measured move from the larger ascending channel. This would take the price down to $90,000 if it played out.
Instead, it rather looks like the price has been caught by the 0.618 Fibonacci level at $92,890. The deepest Fibonacci level for this move is the 0.786 which is at $91,000.
Finally, the Stochastic RSI, which signals price momentum, is at the bottom, meaning that a cross back up could be forthcoming.
Weekly price momentum has topped out
Source: TradingView
Looking out at the weekly time frame, it can be seen that the price has held at the ascending trendline. However, a real point of concern is that the Stochastic RSI on this time frame has just experienced a cross-down of the indicators from the top.
As can be observed from the Stochastic RSI, going back as far as the bull market of 2021, there aren’t many fake-outs of this indicator. In fact, there is only September 2021, and March 2023. That said, there is still the rest of the week to go, and it will only be at the end of the day on Sunday that this cross-down could be confirmed.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.