Bitcoin Retraces Below $47K as MicroStrategy Announces BTC Loan
Estimated Reading Time: 3 minutes
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more
Free Crypto Signals Channel
Free Telegram Channel
Commenting on the development, MicroStrategy CEO and Bitcoin bull Michael Saylor tweeted:
“Macrostrategy, a subsidiary of MicroStrategy, has closed a $205 million bitcoin-collateralized loan with Silvergate Bank to purchase bitcoin.”
The company revealed that Silvergate Bank “has issued a $205 million term loan under its Silvergate Exchange Network (SEN) Leverage program to Macrostrategy LLC.” MicroStrategy, which now has 125,051 BTC in its treasury, added: “The interest-only term loan is secured by certain Bitcoin held in Macrostrategy’s collateral account with a custodian mutually authorized by Silvergate and Macrostrategy.”
Per the agreement, Macrostrategy Will channel the proceeds of the loan into more BTC purchases, payment of outstanding fees, interest, and other loan-related expenses.
The SEN Leverage program, released in 2020, allows institutions access to funding through Bitcoin-collateralized US dollar loans.
Saylor noted in his tweet that “the SEN Leverage loan gives us an opportunity to further our position as the leading public company investor in bitcoin.” He further explained:
“Using the capital from the loan, we’ve effectively turned our bitcoin into productive collateral, which allows us to further execute against our business strategy.”
Key Bitcoin Levels to Watch — March 31
After a goodish run over the week culminating in a new yearly high sighting above $48K, BTC has lost bullish steam and has posted a much-awaited backtracked to the $46.3K support. This retrace comes after a prolonged consolidation around the $47K level and an inability to extend its gains above the $47.5K zone over the last 48 hours.
The retrace has removed the benchmark cryptocurrency from the support of several key indicators, including the hourly 100 EMA, the long-term ascending trendline, and the healthy $47K support, as the price barrels towards the down end of my ascending channel.
That said, I foresee a retest of the $46.3K – $46K support in the coming hours, with a maximum decline allowance to $45.8K, where the base of my channel resides. After this correction, the cryptocurrency should have eased off the overheated tensions and a possible return to $48.5K in early April.
Meanwhile, my resistance levels are at $47,000, $48,000, and $48,500, and my key support levels are at $46,300, $46,000, and $45,800.
Total Market Capitalization: $2.12 trillion
Bitcoin Market Capitalization: $884.3 billion
Bitcoin Dominance: 41.5%
Market Rank: #1
You can purchase Lucky Block here. Buy LBlock
