Bitcoin (BTC) News Today: MicroStrategy’s BTC Acquisition vs. Weak Earnings

MicroStrategy Bitcoin Purchases Countered Weak Earnings Results

Bitcoin (BTC) advanced by 1.13% on Monday (April 29). Reversing a 0.60% loss from Sunday (April 28), BTC closed the session at $63,880. Significantly, BTC ended a three-day losing streak.

News of MicroStrategy (MSTR) acquiring BTC drove buyer demand for BTC and the broader crypto market. MicroStrategy founder and Chairman Michael Saylor announced the purchase, saying,

“In April, MicroStrategy acquired an additional 122 BTC for $7.8 million and now holds 214,400 BTC. Please join us at 5pm ET as we discuss our Q1 2024 financial results and answer questions about the outlook for Business Intelligence and Bitcoin.”

The additional 122 BTC took the total MicroStrategy haul to 214,400 BTC.

The MicroStrategy Chairman also shared an up-to-date chart showcasing MicroStrategy’s performance since adopting its Bitcoin Strategy.

However, MicroStrategy shares declined by 2.63% in after-hours trading. Investors reacted to the latest earnings results. The Bitcoin firm reported earnings per share of -$8.26 vs. a consensus of -$0.55. Revenue of $115.25 million fell short of expectations after sales declined by 5.2% year-on-year.

The weaker-than-expected earnings coincided with another gloomy day across the US BTC-spot ETF market.

BTC-Spot ETF Market Faces Four Consecutive Days of Net Outflows

BTC-spot ETF market flow data for Monday (April 29) continued to send bearish price signals.

According to Farside Investors,

• Grayscale Bitcoin Trust (GBTC) saw net outflows fall from $82.4 million to $24.7 million on April 29.
• Fidelity Wise Origin Bitcoin Fund (FBTC) saw net outflows increase from $2.8 million to $6.9 million.
• ARK 21Shares Bitcoin ETF recorded net outflows of $31.3 million after seeing net inflows of $5.4 million on Friday (April 26).
• Excluding flow data for iShares Bitcoin Trust (IBIT), Invesco Galaxy Bitcoin ETF (BTCO), and Valkyrie Bitcoin Fund (BRRR), the US BTC-spot ETF market saw net outflows of $54.3 million.

On Tuesday (April 30), the HK BTC and ETH-spot ETFs will launch. Investors will get a birds-eye view of buyer appetite for BTC vs. ETH. Bloomberg Intelligence Senior ETF Analyst Eric Balchunas estimated the BTC-spot ETF market to dominate, saying,

“Note also that this is the first time we will get clean look at how popular Eth is relative to btc in ETF format. What % of the net flows do you think they will grab? I think 10% or less.”

Technical Analysis

Bitcoin Analysis

BTC hovered below the 50-day EMA while remaining above the 200-day EMA. The EMAs affirmed the bearish near-term but bullish longer-term price signals.

A BTC break above the 50-day EMA would support a move to the $69,000 resistance level. A breakout from the $69,000 resistance level would give the bulls a run at the March 14 all-time high of $73,808.

On Tuesday, BTC-spot ETFH flow data from the US and HK need consideration.

Conversely, a BTC break below the $64,000 support level would bring the $60,365 support level into play.

With a 46.88 14-Daily RSI reading, BTC could fall below the $58,000 handle before entering oversold territory.

Ethereum Analysis

ETH sat below the 50-day EMA while holding above the 200-day EMA. The EMAs sent bearish near-term but bullish longer-term price signals.

An ETH break above the $3,244 resistance level and the 50-day EMA would bring the $3,480 resistance level into play.

Conversely, an ETH fall through the $3,033 support level would give the bears a run at the $2,800 handle and the 200-day EMa.

The 14-period Daily RSI reading of 49.23 indicates an ETH drop to the $2,800 handle before entering oversold territory.