Major investors MicroStrategy and Grayscale are backing Bitcoin in the current downturn, after which it is heading back up.
Bitcoin (BTC) is showing fighting spirit today, 22 January, as it heads back up after yesterday’s dip below US$30,000.
Bitcoin climbs 8.5% upwards
As data from Cointelegraph Markets and TradingView shows, Bitcoin was up 8.5% on Friday by press time.
This bounce follows a tumultuous previous day in which the market-leading cryptocurrency had slid as low as $28,950. This is the second time in the new year that bitcoin has fallen below US$30,000.
Bitcoin hourly chart (Bitstamp). Source: TradingView
Meanwhile, software maker MicroStrategy, known for its heavy investments in Bitcoin, has revealed it has purchased an additional 314 BTC, bringing the company’s Bitcoin assets to 70,784 BTC.
„MicroStrategy has purchased 314 more #Bitcoin for a total of $10m. @michael_saylor has used the downturn as a buying opportunity,“ as summarised by crypto information service Documenting Bitcoin, alluding to MicroStrategy CEO Michael Saylor.
The Bitcoin major investor, who bought up the new Bitcoin at a price of 31,808 US dollars, is thus not only taking advantage of the favourable moment, but is at the same time helping the crypto market leader back on its feet. The influential crypto asset management company has also made purchases during the retracement.
All eyes on US$29,000
Meanwhile, the other major investors are eyeing the area below US$30,000.
As crypto data service Whalemap explains, this is a key support zone that must be defended to prevent Bitcoin from sliding to US$20,000 after all.
„A downturn below US$28,727 would give us a further retracement to at least US$23,818,“ according to the relevant tweets.
„There’s not a lot of support below US$28,727 right now, so if we settle in that area, I think we’ll see a drop to at least US$23,818,“ co-founder Artem Lazarev told Cointelegraph.
„Support at US$23,818 is not particularly strong, but should give us enough time for Bitcoin to consolidate again. Otherwise, support at US$19,322 is still super strong, so the big guys will put their stops here at the latest.“
Translated with www.DeepL.com/Translator (free version)