GlobalMarketSignals

Dude, Where's My Support Level?

BITSTAMP:BTCUSD   Bitcoin
Ah good ol Saylor's BTC position will apparently face a margin call at $21,000. Just wanted to take a look at potential downside that is within the realm of historical possibility. The most severe pullbacks have sat in the 70-85% range. If we take a look and simply just map it out, $11,000 would certainly shake the hell out of the tree which is 84% down from the ATH.

This is all just one week/month at a time and IF we keep selling, Ill be looking at that yellow trend line to see how price reacts, which currently sits at about 77% down from the highs.

Quite something that the margin call level is basically just above technical support...

Stay sharp out there.
Comment:
The latest developments on the margin level.

Saylor's Tweet May 10th 2022:

"MicroStrategy has a $205M term loan and needs to maintain $410M as collateral. $MSTR has 115,109 BTC that it can pledge. If the price of #BTC falls below $3,562 the company could post some other collateral. See slides 11-12 in Q1 2022 presentation. #HODL"

And from their earnings presentation:

"As of March 31, 2022, the original cost basis and market value of MicroStrategy’s bitcoin were $3.967 billion and $5.893 billion, respectively, which reflects an average cost per bitcoin of approximately $30,700 and a market price per bitcoin of $45,602.79, respectively."
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