Ironclad Resistance
Microstrategy announces more Bitcoin purchases
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Cheat Sheet -
Support and resistance levels and our daily, weekly and monthly bias on BTC, ETH, OIL, ES, and NQ as well as our favorite altcoins.
Crypto News
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Cash App creator dies following stabbing in San Francisco (CoinTelegraph)
Bitcoin white paper is apparently hiding in Apple’s modern macOS (CoinTelegraph)
Ether Enthusiasm Outstrips Bitcoin as Shanghai Fervor Grows (Blockworks)
Coinbase-Backed Motion Says Tornado Cash Ban is ‘Unconstitutional’ (Blockworks)
Mutant Apes Take the Lead in Serum City, an ApeCoin-Powered Ethereum NFT Game (Decrypt)
Aragon’s New DAO Toolkit on Polygon Takes Aim at Voter Apathy (Decrypt)
BTC Outlook
Another week, another announcement from Michael Saylor that Microstrategy has purchased more Bitcoin. Just like last week the announcement was followed by a sell off across crypto assets. Immediately, many were vocal on Twitter that Microstrategy owns “too much Bitcoin”. That if they keep buying more no one will want to use Bitcoin because it’s all held by one entity.
It is possible that this is just the natural adoption cycle of Bitcoin. If no one besides Microstrategy wants to buy it then the price will naturally go down. Then Microstrategy will become a forced seller and the price will get even cheaper. Once the price is cheaper and Microstrategy has been forced to sell this will create a buying opportunity and the pendulum will swing the other way.
Of course, this is just a hypothetical. There are still much more Bitcoins in circulation than what Microstrategy currently holds.
The price is currently near Microstrategies entry price of $29,800. It is likely the price will trade between this resistance and the 50 day moving average for the coming months unless there is an outside news event to push the price above or below these levels.
Join us in discord where we will continue to monitor BTC price action.
Possible Course of Action
HODL if long spot
Do nothing and wait for BTC to retest the 50 day moving average near $25k
Short near $30k expecting a retest of $25k
The Bulls’ Defense:
Price continues to trade above 50 day MA
The Bears’ Prosecution:
Price struggling to hold $28k as support
A Closer Look
This section will be focused on taking a closer look on what Hal thinks is important to watch in the coming week.
This week Hal looks at UNI.
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