14.05.202118:20 Forex Analysis & Reviews: Bitcoin: Elon Musk only helped crypto institutionalists

Bitcoin has not lost its status as a viable asset after Elon Musk's provocative statement on Wednesday.

It later became clear that discerning institutional crypto enthusiasts took advantage of the drawdown to buy more coins at a discount. Known for its interest in bitcoin, MicroStrategy, for example, decided to replenish its stocks and was not afraid of the climate risks.

CEO Michael Saylor said in a tweet that MicroStrategy acquired an additional 271 BTC worth $15 million at an average price of $55,387 per bitcoin.

The accumulation of bitcoins by large organizations such as MicroStrategy, Grayscale and others like them, continues. This indicates that the main cryptocurrency is finally starting to win the battle for the mainstream. MicroStrategy holds about 91,850 BTC, which it has spent about $2.241 billion buying.

Taking into account the earlier trades when BTC was below the current price, the average purchase price of each bitcoin owned by MicroStrategy averages around $ 24,403.

All this data was revealed on Twitter by the CEO of MicroStrategy. The firm is still buying the main cryptocurrency despite a correction and fears of a bearish market. The company is not embarrassed by the collapse of the crypto market in the amount of $300 billion provoked by Musk, a large investor continues to increase the pool of bitcoins, laying out millions of dollars for it.

It is worth noting that the well-known cryptanalyst Mike McGlone of Bloomberg Intelligence said that despite all the turmoil, bitcoin is still good to buy and may continue to rise.

All this confirms the opinion expressed in yesterday's review. Elon Musk created a trigger for the correction, but it is not enough for global changes in the perception of bitcoin, even if the correction turns out to be longer, in order for the "bitcoin bubble" to burst, stronger drivers are needed.

On the daily chart of the main cryptocurrency, we can see that so far all breakouts of the level of $50,000 per coin have been false. The price remains above the support of the gentle upward trend and the local level of 48,178.13 (red dotted line). This means that, technically, there is still a chance for recovery.

But leaving the review without an alternate scenario would be unprofessional. In case of a true breakdown of the above boundaries, bitcoin may fall to the level of 41,980.24.

Exchange Rates 14.05.2021 analysis

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Ekaterina Kiseleva,
Analytical expert
InstaForex Group © 2007-2021
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