Bitcoin has decisively broken above $77,000 for the first time since its sharp selloff in early February, marking a significant technical milestone that has positive implications for MicroStrategy (MSTR), the largest publicly traded holder of bitcoin. The cryptocurrency’s rally has pushed the business intelligence firm’s bitcoin holdings back into profitability, a notable shift for the company that has been aggressively accumulating BTC over recent years under the leadership of Michael Saylor.
The price action represents Bitcoin’s first decisive breakout since the early February downturn, when the cryptocurrency plummeted to a low near $60,000. That sharp decline had wiped out gains from MicroStrategy’s bitcoin strategy, but the recent rally has reversed that trend.
MicroStrategy is now back in profit on its bitcoin holdings, with an average purchase price of $75,577. The company’s shares surged 8% on the day, reflecting investor confidence in both the firm’s strategic bitcoin accumulation and the broader cryptocurrency market recovery.
Bitcoin’s move above $77,000 is technically significant because it represents the first time since early February that the cryptocurrency has traded firmly above its 100-day moving average. The 100-day moving average, currently sitting at $74,774, is a key technical indicator that investors use to gauge short-to-medium term price momentum.
The previous two tests of the 100-day moving average had resulted in rejections and further downside, adding weight to the current breakout. Bitcoin briefly traded as high as $76,700 on February 4 before continuing lower. A later recovery attempt on March 17 also stalled at $76,013, making the current move above $76,300 particularly notable for technical analysts.
Beyond the immediate price action, MicroStrategy’s stock is also trading above its 200-week moving average for the first time since February. This longer-term trend indicator, which smooths price data over roughly four years, signals improving long-term momentum for the company.
Bitcoin has now rallied more than 25% since bottoming in early February. The cryptocurrency’s climb above key technical levels suggests that buyers have gained confidence after months of volatility and uncertainty in the broader digital asset market.
MicroStrategy’s return to profitability on its bitcoin holdings is particularly significant given the company’s public commitment to accumulating bitcoin as a long-term store of value. The firm has positioned itself as a corporate vehicle for bitcoin exposure, with Saylor frequently promoting the cryptocurrency as superior to traditional treasury reserves.
The company’s strategy of accumulating bitcoin at various price points has been vindicated by the recent price recovery. As bitcoin continues to find support above key technical levels, MicroStrategy’s position as the largest publicly traded bitcoin holder could attract further investor interest.
Cryptocurrency investors have been closely monitoring bitcoin’s ability to hold above $76,000, viewing it as a critical level that would signal potential for further upside. The current breakout suggests that sellers who had been defending this level have been overwhelmed by buying pressure.
The technical indicators suggest that momentum is shifting in favor of the bulls. The combination of price moving above the 100-day moving average and MSTR trading above its 200-week average creates a bullish setup for both bitcoin and the business intelligence firm.
MicroStrategy’s success in returning to profitability on its bitcoin holdings demonstrates the potential returns available to investors who maintained conviction during periods of volatility. As the company continues to hold its bitcoin treasury, future price movements could significantly impact shareholder value.
The cryptocurrency market has shown resilience in recovering from the February selloff, with bitcoin leading the recovery higher. This latest breakout reinforces the view that longer-term bitcoin holders are willing to defend higher price levels as the digital asset continues its journey as an emerging store of value.
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