Thursday, April 18, 2024

Will MicroStrategy Save Bitcoin? Price Correction Ahead Despite S&P 500 Buzz.

Since October, there has been a notable increase in the price of Bitcoin (BTC), which has benefited investors in general and MicroStrategy in particular. The company may soon be deserving of a spot on the S&P 500 as it continues to meet listing requirements and has shown a strong commitment to Bitcoin through its subsequent transactions.

Bitcoin might put MicroStrategy in a position to be considered for the S&P 500.

With 190,000 BTC tokens valued at nearly $10 billion, business analytics company MicroStrategy currently has a $12 billion market capitalization. It happened when the company placed a large wager on the massive cryptocurrency Bitcoin. The company’s audacity nearly earned it a spot on the S&P 500, the most significant index in the American stock market.

The S&P 500, which is a list of the 500 largest publicly traded companies in America, requires a company to have a market valuation of at least $15.8 billion to be listed. It is difficult for a business to meet this selection criterion because of the high threshold. However, MicroStrategy is steadily increasing its Bitcoin holdings and is getting closer to the threshold with each transaction.

In addition to yet another large acquisition, a strong showing by the price of Bitcoin might help push MicroStrategy closer to the S&P 500 benchmark. To be more precise, if Bitcoin moves farther north, breaking through the $52,985 range high and eventually regaining its all-time high of $69,000,.

As of right now, Bitcoin is just 23% away from its high price. Its inclusion in the S&P 500 is expected to boost investor confidence to the point where Bitcoin may soon begin to appear in almost every portfolio.

Meeting liquidity requirements and having a continuous history of profit-making for at least four quarters prior to applying are two further selection criteria for the S&P 500.

Michael Saylor, the CEO of MicroStrategy, stated in a Bloomberg interview that “Bitcoin is the exit strategy” and that “I’m going to be buying the top forever.” It is the most valuable resource.

Forecast for the price of bitcoin as MicroStrategy pledges to buy bitcoin indefinitely

The price of bitcoin is tilting southward after breaking below the $51,335 immediate support level. It follows the execution of a sell signal by the Relative Strength Index (RSI), which crossed below its signal line.

The Awesome Oscillator’s (AO) red-flashing histogram bars are another indicator. The Moving Average Convergence Divergence (MACD) shows a decline as it approaches negative values. The MACD’s near-crossing below its signal line, or orange band, has historically sparked a bearish cycle.

These characteristics could cause the price of Bitcoin to drop by 7% to the psychological $48,000 mark. Sidelined investors may have an opportunity to enter just above the supply zone that has evolved into a bullish breaker between $45,556 and $46,691 if this level fails to hold. Nonetheless, a sustained decline would be confirmed if it broke and closed below its midline at $46,166.

On the other hand, should the bulls get traction, the price of bitcoin may move northward and break free of the rising channel. A strong move over this barrier would refute the bullish narrative and allow Bitcoin to clear the $52,985 range high.

The $55,000 milestone, or the psychological $60,000 mark in a very optimistic scenario, would be the next obvious target for Bitcoin.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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