Pre Open US - Bitcoin 2 Aug 2023

MicroStrategy, the largest publicly traded holder of Bitcoin (BTC), has returned to profitability in Q2. Overcoming a $1 billion impairment charge from the previous year's cryptocurrency market downturn, the Virginia-based company reported net earnings of $22.2 million, a significant improvement compared to the previous year's loss of over $1 billion. Former CEO Michael Saylor's bet on Bitcoin proved successful as the cryptocurrency rebounded, lifting the company's financials. MicroStrategy plans to raise to $750 million via share sales for general corporate purposes, including more Bitcoin purchases, working capital, and potentially repurchasing debt. Recently, the company bought an additional 467 Bitcoins, bringing their total holdings to an impressive 152,800 BTC.

The impact on the Bitcoin price was significant, and currently, BTC is trading around the 30,000 area. The improvement in sentiment appears to be temporary, as the market requires more bullish news and further developments to sustain positive momentum.

From a technical standpoint, Bitcoin came back to its last support at the 30,000 level. A breakout of this level is necessary for any sustained short-term trend. The actual price action shows a rejection of the 30,000, and a possible comeback is more probable towards first the 28,800 support and followed by the 28,000.