Microstrategy purchased again 301BTC. Is this a sign?

[Lucius]

~snip~
Is it a sign? Probably. I see it as a sign that they expect the bear market come to an end in the near future. And since also the historical data (on BTC price) tells the same, I'm not surprised.

I don't believe that this is the case when it comes to this latest investment, unless by "near future" someone considers the period that will occur in 1.5 to 2 years from today. For such a large company, it is certainly nothing more than the blink of an eye, while for many, 2 years seems like an eternity from today's perspective.

It is interesting to me that the total number of Bitcoins that MS now owns is rounded to 130 000, which is a very nice number - of course not for those who believe that 13 is a very unlucky number.

[NeuroticFish]

~snip~
Is it a sign? Probably. I see it as a sign that they expect the bear market come to an end in the near future. And since also the historical data (on BTC price) tells the same, I'm not surprised.

I don't believe that this is the case when it comes to this latest investment, unless by "near future" someone considers the period that will occur in 1.5 to 2 years from today.

I think that we may have a difference in the terms. By a near end of bear market I don't say I expect new ATH in the near future, no. It's just that the price should slowly start going upwards instead of downwards. And I have high hopes that this is gonna happen before 2022 ends.


However, OP has clear up the situation: he was thinking on trading (where the thread was also moved since my last post), hence he was talking about movements on very short term.

[globalpain]

Microstrategy has indeed bought Bitcoin at the bottom price,
of course this is a sign that the Bulls will come back again in the near future, and have a look!
the cryptocurrency market is very volatile after the FOMC, it's better not to trade at this time because it is very risky

[blockman]

Everyone knows this is the ultimate bearish indicator.

Because they're buying? Well, they've been doing that even on a bull run.

Why people do really that react that much within these buys? specially by Microstrategy.. People wont really be putting up much interest or attention if we do see these purchases on bull period but now when the
market is on deep reds then this is where people do really put up some emphasis or recognition that this might be a sign of bull run or recovery is on when these institutions is really making
purchases without even trying to look back that they've been doing this if ever they do see the price had a good entry point.
This isnt sign but rather a casual purchase of coins whenever they do see its worth to buy in.

I guess it's because it's a norm that whenever a big company buys bitcoin, it should always be on the headline or if a company buys a lot of bitcoin.
For me, there's no difference whether they buy during the bull or bear market, it doesn't matter really at all. It's because they've been known doing that long time already and if they've bought a lot again this time, it's not really that new thing anymore.

[mk4]

In what universe a company would buy bitcoin if they'd expect the price to fall deeper?
All your logic would make sense if MicroStrategy would have been starting to sell; but they're buying.

Is it a sign? Probably. I see it as a sign that they expect the bear market come to an end in the near future. And since also the historical data (on BTC price) tells the same, I'm not surprised.

To be fair, if they're purchasing bitcoin because they're expecting the bear to end in the near future, then they've been painfully wrong for a few times now. This is like their 4th purchase of the year already.

^But if I'm going to guess, I don't think they're even trying to time bottoms.

[adaseb]

When he bought in the $10 k area back in 2020 many were surprised by his purchases. And he had a small average something like $12345 for a while.

However his mistakes were buying more in the $50K and higher region. And this is why he has a high average at $30K.

This is a problem because it will make you think. When BTC goes back to $30k will he lighten his position a little? Probably.

[Eternad]

When he bought in the $10 k area back in 2020 many were surprised by his purchases. And he had a small average something like $12345 for a while.

However his mistakes were buying more in the $50K and higher region. And this is why he has a high average at $30K.

This is a problem because it will make you think. When BTC goes back to $30k will he lighten his position a little? Probably.

Probably yes because they are investment firm and not a foundation that wants o support Bitcoin. Imo they are doing this kind of small purchase whenever there’s a clear sign of bearish movement to lighten the mood of crypto traders and give some relief on Bitcoin price. At the same time they are scaring too some traders because there moves will put them to a tons of losses and we all know that they might take profit or cutloss at some point.

[worle1bm]

They are accumulating more and more btc in the balance sheet and is the largest institutional btc investor with more then 122k bitcoins which is huge but they have cleverly managed to buy them at average price of around $35-$40k if I am right.At this time they are not in profitable situation but with Saylor being optimistic they won't sell anytime soon and will make profits out of it once price rise.

But the thing is with such big investment also you will see little to no impact on the prices as we are still stuck in the same bearish zone but still there's demand for bitcoin and we could break the barriers with the end of this year.

[FinneysTrueVision]

301 BTC is a small amount and won't really affect the market. Microstrategy is probably just looking to lower their average buying price. I wouldn't be surprised if they continued buying if the price keeps going lower.

[NeuroticFish]

In what universe a company would buy bitcoin if they'd expect the price to fall deeper?
All your logic would make sense if MicroStrategy would have been starting to sell; but they're buying.

Is it a sign? Probably. I see it as a sign that they expect the bear market come to an end in the near future. And since also the historical data (on BTC price) tells the same, I'm not surprised.

To be fair, if they're purchasing bitcoin because they're expecting the bear to end in the near future, then they've been painfully wrong for a few times now. This is like their 4th purchase of the year already.

^But if I'm going to guess, I don't think they're even trying to time bottoms.

They have been DCA-ing (more or less) in most of the cases. But now it seems that it has passed much more time since the last buy as usual, but I didn't check, it's just a feeling. Plus lately they are in trouble with the liquidity, that's why my guess was that they may be core careful (?) and they may be expecting the end of bear market.
Or maybe I've just put my hopes and expectations on a higher level than the logic. Seeing you guys are against my idea I feel that this may be the case.

[Natalim]

301 BTC is a small amount and won't really affect the market. Microstrategy is probably just looking to lower their average buying price. I wouldn't be surprised if they continued buying if the price keeps going lower.

Not just a small amount. It is already a huge amount of money but never I think this will be used to manipulate the market and make a huge pump but seeing this some people, some companies are taking this huge correction to accumulate more.
I'd never see this will be the sign for the bear season to stop. It was not the time yet to think about it because even some people are buying more Bitcoins but there many individuals who are still selling their Bitcoins, meaning the drop is still possible.

[Lucius]

I think that we may have a difference in the terms. By a near end of bear market I don't say I expect new ATH in the near future, no. It's just that the price should slowly start going upwards instead of downwards. And I have high hopes that this is gonna happen before 2022 ends.

I have nothing against it, but when it comes to this year, I wouldn't hope too much for any positive change, considering that I don't see any reason for the price to go up significantly, let alone to stay there. Any attempt to approach and reach the value of around $25k will probably end up returning to the values we are defending now.

Maybe it will sound pessimistic, but if we keep the price at around $20k until the end of the year, I would consider it positive, although not a guarantee that we have reached the bottom. Too many hyenas smelled blood, and by that I mean those big players who have a lot of money - and they already know very well that Bitcoin has become a safe bet if they play smart, and that means knocking down the price as much as possible, buying as much as possible and then emptying the bag in next ATH.

[AicecreaME]

They always buy bitcoin every time it dips, and that's not even guarantee that the Bitcoin's price will go deeper, maybe it is the other way around, it'll pump but not an indicator of a continuous bull market. The biggest advice is that always trade with precautions, don't get easily baited by FUDs and just sell your coins because of having a panic.

Here's their purchase history.

[pawanjain]

History has shown us many times that the big players always buy when there's a huge dip in the market.
While the rest of the people are selling their coins in panic some are buying on the other side because they know that the price of bitcoin will soon spike upwards.
We don't know yet whether the price of bitcoin will fall further below $19k or not but the current price is surely a good price to buy some coins.
Averaging at this price is surely a good strategy currently.

[justdimin]

They always buy bitcoin every time it dips, and that's not even guarantee that the Bitcoin's price will go deeper, maybe it is the other way around, it'll pump but not an indicator of a continuous bull market. The biggest advice is that always trade with precautions, don't get easily baited by FUDs and just sell your coins because of having a panic.

Here's their purchase history.

Buying bitcoin when it dips is a very very smart decision and this is a proof of that as well. It's clear that if you do not know what you are doing then you would be selling when it crashes, but that's clearly a mistake because you are selling it when it is bottoming out.

If you want to make a profit then you should be investing when it is at the lowest point, which is right about now. FED gave us a gift, you could be worried that it has been nearly a year since it dropped from ATH and worried that it may "never" recover but the reality is that we are getting there, it is going to be higher. We could never know when it will go up, but it will, and when it does, buying at low will look like a steal.

[serjent05]

Microstrategy has been buying regularly for a couple of years now. I wouldn’t judge the market cycle too much by following what they do. They are underwater now, based on their average buy price. They are probably trying to bring that average purchase price down by buying more coin lower.

The bottom will probably be confirmed by a death candle with high volume, we haven’t seen it yet imo.

That pretty much explains the action of Microstrategy.  They are cost averaging since they are in a negative because of their previous buy.  I also don't see the action of Microstrategy as indicative of the upcoming trend.  They had been lots of news about them buying BTC but the market still stay @ bear trend.

They always buy bitcoin every time it dips, and that's not even guarantee that the Bitcoin's price will go deeper, maybe it is the other way around, it'll pump but not an indicator of a continuous bull market. The biggest advice is that always trade with precautions, don't get easily baited by FUDs and just sell your coins because of having a panic.

Here's their purchase history.

Buying bitcoin when it dips is a very very smart decision and this is a proof of that as well. It's clear that if you do not know what you are doing then you would be selling when it crashes, but that's clearly a mistake because you are selling it when it is bottoming out.

It is indeed a smart move since following the Bitcoin price history, bear market always offer a discounted Bitcoin price that happens to balloon in price once the bear market transitions into a bullish one.

If you want to make a profit then you should be investing when it is at the lowest point, which is right about now. FED gave us a gift, you could be worried that it has been nearly a year since it dropped from ATH and worried that it may "never" recover but the reality is that we are getting there, it is going to be higher. We could never know when it will go up, but it will, and when it does, buying at low will look like a steal.

I highly agree but I do not think FED intention is to crash the Bitcoin price, it's that the Bitcoin market is just so sensitive with FED actions.  The Bitcoin market price history can tell us that there is nothing to worry during the bear market when price of Bitcoin crashes, it always recover once the bear market is over.

[DoublerHunter]

They always buy bitcoin every time it dips, and that's not even guarantee that the Bitcoin's price will go deeper, maybe it is the other way around, it'll pump but not an indicator of a continuous bull market. The biggest advice is that always trade with precautions, don't get easily baited by FUDs and just sell your coins because of having a panic.

Here's their purchase history.

^Are they the largest BTC holders, right?
After this purchase, they owned 130k BTC and which is quite a huge amount worth billions of dollars.
This is what I worried about when big companies sell their BTC holding all at once, possibly the market would suffer and cannot recover quickly. Let us hope that someday they will not dump the market in just a day. However, this is a part of the good news that another company believed BTC.

[Rufsilf]

MicroStrategy buys 301 BTC at an average price of $19,851.00 or worth 6M$.


Everyone knows this is the ultimate bearish indicator. The price is now bearish due to the upcoming Feds meeting regarding interest rate too. Are you shorting the news? What price do you think is the bottom considering the interest rate that Feds released is too high to what economist expecting?

Is this a sign? Yes, a sign that we need to accumulate also just like what these bug companies are doing now. We have to know that the situation can't change it true magic that we think it will pump instantly after such a huge buy, not the way it works. 
If we hear Microstrategy are buying it means that they are preparing for the future and taking this opportunity while there is still time to buy at $19,851 for you can expect it will happen again. This is how investors understand the market and they are still in the "buy low and sell high" strategy.

[mk4]

^Are they the largest BTC holders, right?
After this purchase, they owned 130k BTC and which is quite a huge amount worth billions of dollars.
This is what I worried about when big companies sell their BTC holding all at once, possibly the market would suffer and cannot recover quickly. Let us hope that someday they will not dump the market in just a day. However, this is a part of the good news that another company believed BTC.

Any entity that holds a crap ton of bitcoin(or any publicly tradable asset) won't dump through spot markets in the first place — they'll be doing it through OTC. Doing it through OTC is simply a far more money-efficient way of buying/selling huge amounts.

[danherbias07]

When he bought in the $10 k area back in 2020 many were surprised by his purchases. And he had a small average something like $12345 for a while.

However his mistakes were buying more in the $50K and higher region. And this is why he has a high average at $30K.

This is a problem because it will make you think. When BTC goes back to $30k will he lighten his position a little? Probably.

Probably yes because they are investment firm and not a foundation that wants o support Bitcoin. Imo they are doing this kind of small purchase whenever there’s a clear sign of bearish movement to lighten the mood of crypto traders and give some relief on Bitcoin price. At the same time they are scaring too some traders because there moves will put them to a tons of losses and we all know that they might take profit or cutloss at some point.

And it works right? It made you think about what will happen next after they purchased the said amount.
Imagine how it will affect newbies without proper knowledge about the Bitcoin movement. I bet they are in FOMO now and also buying after receiving the news.
They know there are investors and traders that are monitoring their next step so whenever they see an opportunity they could take advantage of it using their money.
But, they don't have the same power as other known entities yet, like that billionaire who has so many followers that they would do everything that he does. If he buys, they buy. If he sells, they are fucked.