MicroStrategy to defend BTC price if strength decreases-“never get” to $21,000

Concerns about surrender have led MicroStrategy to reveal critical details about what it would do if Bitcoin’s price strength decreased.

With hours to go before fresh Federal Reserve cues, Bitcoin (BTC) experienced classic “choppy” price movement on May 4.

“BTC is now testing a multi-week resistance”

BTC/USD swung between support and resistance after hitting $37,600 on the evening of May 3, according to reports.

At the time of writing, the pair has bounced back to $39,000, bringing respite to low-timeframe traders at 4.1 percent off the lows.

However, as markets braced for Fed-induced volatility, Bitcoin remained rangebound and vulnerable to macro events.

On May 4, the Federal Open Markets Committee’s (FOMC) two-day meeting and press conference were set to begin at 2:00 p.m. EST.

With little to cheer bulls, some looked to the past for relief. The start of the last cycle of significant interest-rate hikes by the Fed in 2015 proved a turning moment for BTC price strength, culminating in the blow-off high in December 2017.

“BTC is now testing a multi-week resistance,” popular trader and analyst Rekt Capital said after the increase above $39,000 on the daily chart:

“If this is stopped, the multi-week trend will be broken, and $BTC will move higher.”

BTC will “never get” to $21,000

MicroStrategy, the world’s largest Bitcoin corporate treasury, went so far as to imply that in such a scenario, it would increase its Bitcoin purchases.

BTC will “never get” to $21,000, according to MicroStrategy.

Meanwhile, as calls for a “capitulation”-style event to throw in a new macro bottom on BTC/USD grew louder, contingency plans became more vociferous as well.

Phong Le, the company’s president and chief financial officer, outlined the parameters under which it would get a margin call on its Bitcoin-collateralized loan during its Q1 results call.

As a result, MicroStrategy appeared to declare that it would actively assist Bitcoin markets in the event of a significant capitulation. BTC price expectations presently range between $25,000 and $30,000  as a worst-case scenario.

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Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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