Bitcoin Consolidates Above $105K: MicroStrategy Signals Fresh Acquisition Amid Technical Divergence Warnings

Bitcoin holds steady above $105K with a slight 1% gain, while MicroStrategy continues its buying spree, recently acquiring an additional 4,020 BTC. Despite bullish long-term forecasts targeting up to $340,000 by the end of 2025, technical indicators reveal bearish patterns that may signal short-term volatility, including potential retracements to key support levels of $97K and $90K.

Bitcoin continues to trade firmly above the crucial $105,000 mark, recording a modest gain of 1% over the last day. This positive momentum comes despite some bearish signals that hint at a potential pullback. Meanwhile, institutional interest remains strong, with significant accumulation observed in the market.

In a notable move, MicroStrategy has signaled a fresh acquisition, marking its sustained commitment to Bitcoin investment. The company recently purchased 4,020 BTC, valued at approximately $427 million, pushing its total holdings to a staggering 580,250 BTC. This marks the eighth consecutive week of acquisitions for the company, which has become the largest institutional holder of Bitcoin globally, possessing more than both the US and Chinese governments combined.

Yet, alongside this bullish outlook, the scrutiny on MicroStrategy’s practices has intensified. Critics are questioning the transparency of the company’s Bitcoin holdings, especially in light of the absence of regular audits proving its inventory. Michael Saylor, co-founder of MicroStrategy, defends their strategy, arguing that audits could expose their wallet addresses to potential threats.

From a technical perspective, the situation for Bitcoin is somewhat complicated. Some indicators, notably the Relative Strength Index (RSI), are revealing a bearish divergence, suggesting that the buying momentum might be waning even as prices remain high. Analyst Matthew Hyland has identified a crucial closing level on the weekly charts that could significantly impact future price movements.

The bearish signals have led traders to eye possible retracement levels of $97,000 and $90,000, with increasing selling pressure being a concern. However, the market retains an overall bullish structure, with strong support at $84,000 giving some reassurance.

Looking ahead, analysts are still optimistic about Bitcoin’s long-term prospects. Analyst Plan D has identified a potential three-year cup-and-handle pattern that could see Bitcoin soar to $340,000 by the close of 2025, assuming it maintains support in the $91,000-$100,000 range. This follows a bullish phase started after breaking above $76,000 last November.

Short-term price predictions highlight an immediate resistance level at the 20-day exponential moving average, pegged at around $105,232. Should Bitcoin slip below this marker, it may trigger a drop towards the critical $100,000 support zone. Conversely, breaking through $111,980 would open the way to higher resistance around $130,000.

The technical landscape shows some mixed signals for Bitcoin, with the 4-hour chart indicating a downward trend in moving averages, which could benefit sellers. Thus, key support levels to monitor remain at $103,000 and $100,000, with resistance looming at approximately $106,000. Traders should prepare for a potentially turbulent market as these dynamics unfold.