The cryptocurrency market is showing strong signs of recovery after weeks of intense pressure. Institutional giant Strategy () has capitalized on the recent Bitcoin (BTC) price plunge, adding more BTC coins to its massive corporate balance sheet.
This strategic accumulation comes exactly as the heavy selling pressure from spot Bitcoin ETFs begins to cool down. With selling momentum drying up, the pioneer cryptocurrency is reclaiming key psychological price levels and flashing green on its technical charts.
Strategy Buys 520 BTC
Strategy (MSTR) has completed yet another Bitcoin purchase, securing an additional 520 BTC for its corporate treasury, worth around $35 million. The firm used capital raised from its ongoing corporate financing strategies to complete the transaction.
Following its latest purchase, Strategy now holds 847,363 BTC in its reserves. This latest buy reinforces Strategy’s unwavering commitment to its Bitcoin-first treasury policy. However, it represents a drop from Strategy’s BTC purchase of 1,587 BTC for $100 million just last week.
While Strategy has continued consistently buying BTC during periods of market consolidation to lower its average cost basis, the company has been directing resources elsewhere. In the same Bitcoin weekly report, Strategy notes that it has increased its USD reserve from $300 million to $1.4 billion.
Bitcoin ETF Bleeding Slows
In addition to the Strategy purchase, the massive outflows from Bitcoin ETFs over the last few weeks are finally showing signs of slowing down. Outflows from U.S. spot Bitcoin ETF products hit $228 million last week.
While that’s still a substantial amount leaving Bitcoin ETF products, it’s the second consecutive week where the pace of redemptions eased. The previous weeks, more than $315.84 million flowed out of Bitcoin. In the last six weeks, data from SoSoValue showed cumulative withdrawals reached $5.94 billion.
This deceleration of capital exiting US-listed funds has removed a major supply overhang that was depressing prices for weeks. The easing of this ETF selling pressure suggests that short-term panicking is exhausting itself.
As institutional liquidations dry up, the natural market demand is finally able to push the asset’s price upward without fighting against constant structural headwinds.
BTC Price Reclaims $65K
Driven by the slowdown in ETF outflows and Strategy’s recent purchase, Bitcoin price has successfully broken back above the $65,000 resistance, per CoinMarketCap. Reclaiming this crucial level provides a massive psychological boost to retail and institutional traders alike.
However, some market experts urge caution regarding immediate explosive upside. Veteran investor Jordi Visser recently argued that Bitcoin faces strong competition for capital from investors.
Visser noted that high-flying AI stocks including SpaceX (SPCX) continue to dominate Wall Street’s attention and capture the market’s momentum. As long as this trend continues, Visser argues that Bitcoin’s rally might experience a slower, more gradual grind upward.
BTC Technical Indicators Are Improving
From a technical standpoint as seen on Investing.com, Bitcoin’s market structure is looking significantly healthier. BTC technical indicators and moving averages have successfully turned bullish on the 1H and 5H timeframes. The 1D timeframe has also moved up to the neutral range, suggesting there’s room for the BTC price to keep rising.
In fact, the CCI(14), ADX (14) and ROC indicators are now flashing buy signals on the 1D timeframe. This bullish trend could keep improving if BTC holds the $64,000 support. If Bitcoin can firmly hold its ground above the $65,000 zone and maintain these improving technical signals, it will lay a rock-solid foundation for the next sustained leg of the market’s bull cycle.