BTC reached a new all-time high of $108,365 on December 17, but has been in a continuous correction since then. On the evening of the 30th, it again faced strong selling pressure, falling below $92,000 and reaching a low of $91,540.
Although it briefly rebounded to $95,000, it quickly fell back again, and as of the time of writing, it is trading at $92,192, down 1.45% in the last 24 hours.
MicroStrategy Adds Another $209 Million in BTC
However, against the backdrop of the BTC decline, Michael Saylor, the founder of the US-listed company MicroStrategy, tweeted yesterday (30th) that MicroStrategy had purchased another 2,138 BTC at an average price of around $97,837 for a total of $209 million, showing no concern that BTC may have reached a cyclical high.
According to the latest data from bitcointreasuries, after this additional purchase, MicroStrategy's BTC holdings have reached 446,400 BTC, with a total cost of $27.9 billion and an unrealized gain of approximately $13 billion. (MicroStrategy has invested $22 billion to buy 257,250 BTC just this year.)
Analyst: BTC Exchange Net Outflow and Reserve Ratio Hit New Lows
As for whether BTC will continue to fluctuate and break below $90,000, crypto analyst Axel Adler stated that although the recent correction has caused investors to worry about market uncertainty, the net outflow and reserve ratio of BTC on exchanges are sending positive signals - this indicator shows that the amount of BTC being withdrawn from exchanges is greater than the amount being deposited, suggesting that investors are now more inclined to store BTC in cold wallets for long-term holding rather than actively trading, which usually signals a bullish price trend.
The analyst also stated that historically, this indicator reached a significant peak at the end of the 2022 bear market, and some smart money actively transferred BTC to wallets for storage at that time, marking the bottom of the bear market and laying the foundation for the subsequent bull market. Therefore, the analyst said:
Observing the current market conditions, this indicator shows a similar trend to the past. Although volatility has been high recently, and BTC seems unable to break through the $100,000 level, as exchange reserves continue to decline, the market's bullish momentum is accumulating, which may support a bullish outlook in the future.
BTC Key Support at $90,000
While the analyst maintains a long-term bullish outlook on BTC, he also pointed out that in the short term, if BTC cannot rebound above $100,000, it may continue to decline due to a lack of upward momentum, with the key support level at $90,000.
If BTC receives strong support around $90,000, it may usher in a new round of gains; but if it loses the $90,000 level, deeper corrections may be on the way, and the entire crypto market may also experience more severe pullbacks.
