MicroStrategy may be as smart as ever, “buying” Bitcoin on dips, because an indicator with a “perfect” history tells traders that they should buy.
In a tweet on June 15th, popular analyst Cole Garner believed that the ratio of Bitcoin to stablecoins was a bullish indicator.
Buy on dips or pay attention to whales?
After MicroStrategy announced plans to raise another $1.5 billion, and all the proceeds from the funds could be used to purchase bitcoin, bitcoin consolidated its support at $40,000.
This move was praised by Elon Musk and investor Paul Tudor Jones, the latter now advocating a 5% position in Bitcoin, compared to 1% before.
Currently, the oscillating ratio of Bitcoin to stablecoins predicts a good buying opportunity, even at local new highs.
This shock indicator measures the amount of Bitcoin exchanged relative to stablecoins. According to Garner, when the moving average of this ratio enters a lower bound, it is time to buy Bitcoin.
Since 2019, this indicator has not failed to capture Bitcoin’s bullish trend.
Garner commented: “Since 2019, a perfect “buy on dip” hit rate, it just showed another buy signal.”
CryptoQuant CEO Ki Young Ju still sounded the alarm about the possible new sell-off this week. He said the sell-off may have come from Bitfinex, where whales have accumulated a large amount of short positions.
Ki told Twitter fans: “If the sell-off happens again, it may come from Bifinex.”
“After the Bitcoin crash, most exchanges have digested most of the inflows. With the exception of Bitfinex. All eyes are on the Bitfinex whale.”
Traders follow MicroStrategy
At the same time, MicroStrategy is investing more money in Bitcoin, which in itself is enough to boost the market.
As pointed out by Filbfilb, co-founder of Decentrader, in terms of Bitcoin spot prices reaching higher, the timing of MicroStrategy’s purchase of Bitcoin is very suitable.
He told users of his Telegram trading channel on Friday that this is more of a “fractal” rather than an accidental relationship.
MicroStrategy CEO Michael Saylor continued to speak out about Bitcoin during the financing announcement. He responded to Tudor Jones: “If you invest 5% of your portfolio in Bitcoin, you have already decided to invest 95% of your portfolio in assets that are non-monetized by Bitcoin.”
Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.