Strategy braced for bear market in cryptocurrencies

[Ben Graham]

While Bitcoin is currently trading steadily above $91,000, fully recovering from the correction observed at the end of last week, Strategy is braced for a bear market.

Fong Le, the CEO of Strategy, recently stated that the company has raised $1.44 billion in reserves to demonstrate its ability to provide funding during a market downturn and significant corrections in BTC. This move is also intended to alleviate any concerns from investors and the community regarding the future of the company.

This step is undoubtedly aimed at strengthening trust in the company during a challenging period for the crypto market. Ensuring a substantial amount of reserves allows the company to respond more flexibly to volatility, maintain current projects, and potentially explore new development opportunities. Such statements, backed by concrete actions, are crucial for maintaining a positive image in the cryptocurrency industry. Beyond simply calming investors, attracting such a volume of reserves may indicate the company's strategic vision. It's possible that Fong Le and his team plan to use the current situation to acquire assets at a lower price, so it's not surprising that Strategy does not rule out a new bear cycle for the cryptocurrency market.

Trading recommendations

Regarding the technical outlook for Bitcoin, buyers are currently aiming to reclaim the $92,800 level, which opens a direct path to $95,000, and from there, it's just a step away to $97,300. The furthest target will be the peak around $100,300; surpassing this level will signal attempts to return to a bull market. If Bitcoin falls, I expect buyers at the $90,300 level. A move below this area could quickly drag BTC down to around $88,200, with the furthest target being the $85,800 area.

As for the technical picture of Ethereum, a clear consolidation above the $3,233 level opens a direct road to $3,362. The ultimate target will be the peak around $3,474; breaking above this level will indicate strengthening bullish sentiment in the market and renewed interest from buyers. If Ethereum falls, I expect buyers at the $3,126 level. A retreat below this area could quickly push ETH down to around $3,023, with the furthest target being the $2,924 area.

What's on the chart

• Red lines represent support and resistance levels, where price is expected to either pause or react sharply.
• The green line shows the 50-day moving average.
• The blue line is the 100-day moving average.
• The lime line is the 200-day moving average.

Price testing or crossing any of these moving averages often either halts movement or injects fresh momentum into the market.

The material has been provided by InstaForex Company - www.instaforex.com