Strategy Doubles Down on Bitcoin Despite $5B Loss

• Michael Saylor confirms Strategy will keep buying BTC every quarter, showing strong faith in Bitcoin’s long-term value.

• Technical signals like MACD and four-year SMA suggest Bitcoin may be nearing the end of its bear market phase.

• Strategy’s stock jumps 9% after BTC purchase, highlighting investor confidence despite $5B unrealized losses.

Bitcoin investors are watching closely as Strategy continues to bet big on BTC despite mounting unrealized losses. Chairman Michael Saylor confirmed the firm’s commitment to expanding its Bitcoin treasury, signaling confidence in the long-term value of the digital asset.

Recently, Strategy purchased 1,142 BTC for $90 million, paying an average of $78,815 per coin. This raised the company’s total holdings to 714,644 BTC, now worth roughly $49.36 billion at current market prices near $69,126.

Saylor teased the latest purchase on his usual Sunday X post, linking to the company’s Bitcoin portfolio tracker with the cryptic message, “99>98.” The remark hinted at continued accumulation of BTC. Despite the total position remaining approximately $5.1 billion below the cumulative purchase cost, Saylor stressed the company has no plans to sell. “We expect to keep buying BTC every quarter indefinitely,” he stated, highlighting unwavering confidence even amid volatility.

Technical Indicators Signal Potential Strength

Analysts are watching Bitcoin’s long-term trends closely. CrypFlow noted that the 1-month MACD for BTC is above multi-year downtrend support. The post emphasized, “After more than 2000 days, the monthly MACD crossed again.”

Historically, such MACD crosses have coincided with periods of relative strength in altcoins compared to Bitcoin. The analyst added, “What matters next: Trend support holding and monthly MACD follow-through.”

Meanwhile, analyst Darkfost pointed to a four-year SMA-based metric indicating bear market levels. BTC has moved back into the green zone, approaching its four-year SMA around $57,500. Darkfost explained, “Historically, this level has often marked the final stage of each bear market.” He noted that Bitcoin tends to trade around these levels for several months, providing a potential buying opportunity.

Other than the aggressive accumulation of Strategy, these technical trends show bullish potential in the long term. In addition, investor sentiment is positive, as Strategy’s stock increased by almost 9% in after-hours trading. In addition, the continued MACD and SMA trends may motivate more institutional investors to enter the market. However, there are still some volatility issues to watch out for.