Michael Saylor’s Strategy continued its Bitcoin buying spree last week, even as crypto winter persisted, and the coin formed a rare chart pattern pointing to more near-term downside.
Summary
- Strategy, formerly known as MicroStrategy, acquired 2,486 Bitcoin last week.
- The company now holds over 717,000 coins worth nearly $50 billion.
- Technical analysis suggests that the Bitcoin price is forming a bearish pennant pattern, pointing to a crash.
In an X post, Saylor noted that the company bought 2,496 Bitcoin (BTC) last week for $168 million. This purchase brought its total holdings to 717,131 coins, now valued at nearly $50 billion.
Strategy executed the purchase by selling shares, a move that has continued to dilute its shareholders. Data show that the company still has over $7.8 billion in common shares to sell and an additional $20 billion in preferred STRK.
The company now has over 312 million of outstanding shares, much higher than what it had a few years ago. This dilution will continue, as Michael Saylor has pledged to buy Bitcoin forever. He also revealed that he plans to swap its debt for shares in the future.
Bitcoin price technical analysis points to a crash
The ongoing Strategy acquisition is happening amid concerns that Bitcoin may continue falling in the near term. In a statement last week, Standard Chartered warned that Bitcoin may drop to $50,000 before recovering. The bank reduced its target for the coin from $150,000 to $100,000.
Bitcoin is facing other headwinds, including the tumbling futures open interest, which has moved to $43 billion, down from last year’s high of $95 billion.
At the same time, there are rising odds of a prolonged conflict in the Middle East despite the ongoing talks between Iran and the United States. Donald Trump has sent another carrier to the region, while Iran is conducting drills at the Strait of Hormuz.
A conflict in the Middle East would have a major impact on Bitcoin, which has proven that it is not a safe haven asset.
Technical analysis indicates that the Bitcoin price is slowly forming a bearish pennant pattern, consisting of a vertical line and a symmetrical triangle. The two lines of the triangle are nearing their confluence, meaning that the coin may soon drop to the year-to-date low of $60,000.
The bearish Bitcoin price outlook will become invalid if it moves above the key resistance level at $80,117, its lowest level in November last year.
