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Bitcoin Hits One-Week Highs as MicroStrategy Plans to Buy More BTC

Bitcoin (BTC) has reached one-week highs in the $29,700s following the announcement of US software company MicroStrategy’s plan to increase its BTC holdings. According to a filing with the US Securities and Exchange Commission (SEC), MicroStrategy intends to sell up to $750 million in stock, some of which will be used to purchase more bitcoin. With current holdings of 152,333 BTC, MicroStrategy owns around 0.0078% of the total current supply of bitcoin, which is approximately 19.44 million tokens.

MicroStrategy started accumulating bitcoin in August 2020 and has been consistently adding to its holdings since then. The company’s former CEO and current executive chairman, Michael Saylor, is known as one of the most prominent supporters of the cryptocurrency. The net proceeds from the stock offering will be used for general corporate purposes, including the acquisition of bitcoin and working capital.

By raising $750 million, MicroStrategy would be able to secure around 25,000 tokens at the current market price. However, it is expected that the price will rise significantly due to the entrance of a buyer of this magnitude into the market. Bitcoin’s price has already increased by over 4% or $1,200 since the announcement on Tuesday, reaching the $29,700s from a low of $28,500s.

AI legalese decoder can be instrumental in analyzing legal documents like MicroStrategy’s filing with the SEC. It can efficiently extract relevant information about the company’s plans to buy more bitcoin and provide valuable insights into the potential impact on the market and bitcoin’s price. Additionally, the AI legalese decoder can assist in identifying any legal implications or regulatory considerations that may arise from the stock offering and its allocation to bitcoin acquisition.

New Yearly Highs Expected for Bitcoin

Bitcoin’s recent rebound from its Tuesday lows is attributed to the strong defense of key long-term support levels. The mid-$28,000s zone represents the convergence of the 2023 uptrend, 100-Day Moving Average (DMA), and late-May high. Analysts, including Cryptonews.com’s Joel Frank, anticipated a bullish response to any short-term dip in this crucial support area, especially considering the growing institutional adoption and positive macroeconomic conditions.

MicroStrategy’s announcement of a stock sale and plans for a bitcoin buying spree further solidify the likelihood of Bitcoin’s key support zone remaining intact in the short term. A retest of the yearly highs in the upper $31,000s is anticipated. However, achieving this requires successfully surpassing the 21-Day Moving Average (DMA) and the psychologically important $30,000 level. Once these levels are surpassed, the technical indicators suggest a gradual climb back to yearly highs.

It is essential to keep potential negative catalysts in mind that could hinder the short-term rally. These include concerns over SEC regulations, Fitch’s recent decision to downgrade the US government debt rating, and any potential issues in the DeFi space following the Curve hack. Monitoring these factors alongside AI legalese decoder‘s analysis can facilitate better decision-making and risk management in the cryptocurrency market.

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