Bitcoin Bottom Formation Grows as Saylor's Strategy Outperforms Market

As Bitcoin (BTC) hits a new low, signs of bottom formation grow stronger. Analysts look to the BTC price chart for confirmation. Meanwhile, Michael Saylor's strategy, which involves buying and holding Bitcoin, outperforms Google, Tesla, Nvidia, and Apple over the past year. Saylor has been a vocal Bitcoin supporter and has invested heavily in the asset, demonstrating his dedication to its potential.

As Bitcoin (BTC) continues its volatile journey in the market, signs of a potential bottom formation have emerged. With BTC hitting a new low near $90,000, analysts are closely monitoring the price chart for confirmation of this trend [1].

One such analyst is Michael Saylor, the CEO of MicroStrategy, who has adopted a strategy of buying and holding Bitcoin. Saylor's approach has proven successful, with MicroStrategy's investment in Bitcoin outperforming Google, Tesla, Nvidia, and Apple over the past year [2]. Saylor's dedication to Bitcoin's potential is evident through his vocal support and significant investment in the asset.

The recent downturn in Bitcoin's price has been attributed to a number of factors, including the US imposing tariffs on Canada, Mexico, and the EU. This news caused a risk-asset sell-off, with many altcoins shedding 20% or more of their value [1]. However, Bitcoin has shown some signs of resilience, with a rebound observed after sinking to near $90,000 [1].

Popular trader Johnny, known for his insights on the cryptocurrency market, believes that the worst of the downward move on Bitcoin has played out [1]. This view is supported by the observation of three consecutive higher lows in the downside wicks against December and January's monthly support [1].

Moreover, a new "gap" in CME Group's Bitcoin futures market has opened above $98,000 [1]. These gaps tend to act as a short-term price magnet once the market is open again, often being "filled" within days or even hours [1]. This development could potentially contribute to the continuation of the upward trend in Bitcoin's price.

Despite the relief bounce in Bitcoin's price, US stock markets have not followed suit. The S&P 500 and Nasdaq Composite Index were down 1.75% and 2.25%, respectively, at the time of writing [1]. This decorrelation between Bitcoin and US stock markets reinforces the view that today's risk-off move is driven by cross-asset portfolio rebalancing rather than a single-asset event [1].

References:

[1] Cointelegraph. (2023, February 3). Bitcoin rebounds as analysts eye bottom formation and outperforming strategies. https://cointelegraph.com/news/bitcoin-rebounds-low-btc-price-chart-prints-rare-rsi
[2] CoinDesk. (2022, December 15). MicroStrategy's Bitcoin holdings are now worth more than its market cap. https://www.coindesk.com/business/2022/12/15/microstrategys-bitcoin-holdings-are-now-worth-more-than-its-market-cap/