Sustainable Bitcoin Strategy Despite Paper Losses, Technical Indicators Remain Bullish

Strategy continues to aggressively implement its Bitcoin accumulation strategy, reaffirming a long-term commitment to digital assets despite facing paper losses worth billions of dollars. Alongside this strategy, technical indicators show supportive signals that could shift market sentiment in the coming period.

Michael Saylor, Strategy’s leader, emphasizes that the company plans to expand its Bitcoin holdings each quarter without a set deadline. This confidence is not just rhetoric—recently, Strategy added 1,142 BTC worth $90 million at an average price of $78,815 per coin, increasing total holdings to 714,644 BTC. Based on the current Bitcoin price of $70.53K (up 2.64% in the last 24 hours), this portfolio is valued at around $50 billion.

Although the company’s position still shows an unrealized paper loss of about $5 billion compared to the cumulative acquisition cost, Saylor highlights that there are no plans to sell. A short social media post—“99>98”—referring to the increased holdings, reflects confidence in Bitcoin’s long-term value despite price fluctuations.

Technical Indicators Signal Potential Momentum

Analysts are closely monitoring technical metrics, especially the MACD indicator, which shows an intriguing signal. CrypFlow notes that Bitcoin’s monthly MACD has just crossed above a multi-year downtrend support line—this is the first time in over 2,000 days. Such crossings have historically coincided with phases where altcoins recover relative to Bitcoin, opening diversification opportunities.

Meanwhile, the four-year SMA metric indicates Bitcoin is in the green zone, approaching a long-term support level around $57,500. Darkfost analysis reveals that historically, this level often marks the final stage of each bear market cycle. Bitcoin tends to hover around this level for several months, creating a potential accumulation window for both institutional and retail investors.

Convergence of Fundamental and Technical Strategies

Strategy’s aggressive accumulation responds to favorable technical indicators, creating a positive feedback loop for market sentiment. Strategy’s stock itself surged 9% in after-hours trading, demonstrating investor confidence in the long-term Bitcoin strategy despite unrealized paper losses.

The combination of increasing institutional demand—evidenced by Strategy’s accumulation—and bullish technical signals provides a strong foundation for further upward movement. While volatility remains a factor to watch, this convergence indicates a potential new phase in Bitcoin market dynamics.