Daily Crypto Signals: MicroStrategy Teases Ninth Bitcoin Purchase, Ethereum Tests Critical Support at $2,500

MicroStrategy hints at another Bitcoin purchase amid ongoing volatility, while Bitcoin holds above $105,000. Ethereum struggles at the crucial $2,500 support level, as market analysts watch for potential liquidation events.

In the cryptocurrency market today, MicroStrategy’s executive chairman Michael Saylor hinted at yet another Bitcoin acquisition, which would mark the company’s ninth consecutive purchase. This comes on the back of a recent $1 billion stock offering, allowing the company to expand its significant Bitcoin holdings amidst a backdrop of shifting market sentiments. Bitcoin’s value has been holding over $105,000 despite some fluctuations, and Ethereum is grappling with critical support levels around $2,500, making this an intriguing time for traders.

Over the weekend, activity in the crypto space was notably mixed. Bitcoin, while maintaining a price above $105,000, faced a brief drop below $100,500 earlier in the month, raising concerns among investors. Meanwhile, Tether CEO Paolo Ardoino dismissed rumours regarding an IPO, despite the company boasting a market cap of $515 billion. Adding to the drama, the Bitcoin DeFi platform Alex Protocol suffered a major security breach costing $8.3 million, highlighting ongoing vulnerabilities in decentralized finance, particularly for Bitcoin-based models.

Traders are watching liquidation levels closely given recent market volatility. Data shows that a 10% increase in Bitcoin’s price could trigger a staggering $15.11 billion in short liquidations, while a downturn could lead to $9.58 billion in long liquidations. This uneven scenario has some traders poised for potential upward price movements, as low funding rates suggest a vast number of short positions being held over the weekend.

Bitcoin’s recent price performance indicates a pattern of support retesting. Having held steady around $105,000 after a dip to $100,500, traders describe this as a successful retest for the cryptocurrency. Currently, Bitcoin is trading near its weekly opening at about $105,621. MicroStrategy plans to extend its Bitcoin acquisition strategy, with Saylor’s vague social media posts implying more purchases are ahead. Recently, they acquired 705 BTC for around $75 million, escalating their total holdings to nearly 580,955 BTC worth approximately $61.4 billion.

The $1 billion capital raise from MicroStrategy aims to lure investors looking for robust returns. The company has introduced a new preferred stock format, offering 10% non-cumulative dividends—this is expected to appeal to institutional investors while continuing to bolster Bitcoin buys. Remarkably, MicroStrategy remains the largest corporate holder of Bitcoin, boasting about $20.6 billion in unrealized gains from its cryptocurrency investments.

Looking ahead, some analysts note that Bitcoin might face volatility. Trader Rekt Capital emphasizes that reclaiming the key daily resistance level at $106,600 is crucial to maintain upward momentum. For the fourth consecutive week, if the closing price is above $104,400, that could reinforce bullish sentiment, though some advise caution considering the $100,000 psychological support line.

Meanwhile, Ethereum’s journey has been more tumultuous, struggling to maintain its footing around the $2,500 mark. After oscillating between $2,500 and $2,700, ETH was subjected to significant selling pressure early in June, falling briefly to $2,400 before bouncing back. This has traders worried, as on-chain analysis shows that Ethereum’s performance increasingly hinges on exchange-specific metrics, particularly revolving around Binance.

On Binance, the realised price of $2,392 for deposit addresses has emerged as a critical support point. Since Binance commands the largest Ethereum reserves among centralized exchanges, its users’ cost basis plays a crucial role in price dynamics. The $2,500 threshold is also pivotal; it represents an average price point for a variety of active user addresses. Staying above this level is imperative for investor profitability and market stability.

Should Ethereum fail to hold above $2,500 for a sustained period, it may trigger significant paper losses for many traders, potentially leading to a sell-off that could amplify downward momentum. The coming days will be crucial for Ethereum as market players closely monitor how it reacts to these significant technical levels and the prevailing on-chain data.