Bitcoin may hit $110K as Strategy absorbs nearly 3x new BTC supply

Bitcoin (BTC) is trading wrong a carnivore emblem signifier that projects a breakdown toward the sub-$50,000 area, oregon astir 30% beneath existent levels. However, Michael Saylor’s Strategy could spoil the bears’ plans.

BTC/USD three-day terms chart. Source: TradingView

Key takeaways:

• Bitcoin has avoided a carnivore emblem breakdown for weeks arsenic Strategy keeps buying BTC.

• The setup present resembles Bitcoin’s 2018 bottom, erstwhile a bearish signifier failed and triggered a reversal.

Can Strategy’s BTC buying offset anemic technicals?

Normally, a carnivore emblem remains a bearish continuation signifier due to the fact that determination is not capable request to flooded the broader downtrend.

In Bitcoin’s case, however, Strategy has been taking proviso disconnected the marketplace faster than miners tin regenerate it.

Since March 2, Strategy’s Bitcoin holdings person risen by 46,233 BTC, portion miners person produced lone astir 16,200 BTC implicit the aforesaid period, meaning it has absorbed astir thrice the caller supply.

Strategy’s BTC holdings chart. Source: BitcoinQuant.CO

Much of that request has travel done STRC, Strategy’s variable-rate preferred stock. When STRC held adjacent oregon supra its $100 par value, Strategy kept issuing shares and accumulating BTC.

For instance, past week, Strategy raised $102.6 million done STRC income to assistance money a Bitcoin acquisition worthy implicit $330 million. BTC’s terms has jumped by implicit 6.65% ever since.

STRC at-the-market income analysis. Source: BitcoinQuant.CO

During March 9–13, STRC income raised astir $776 million, capable to bargain implicit 11,000 BTC, portion Bitcoin roseate much than 7% adjacent arsenic the S&P 500 fell 1.6%. The aforesaid play saw BTC’s terms rising implicit 10.5%.

But erstwhile STRC slipped beneath par successful mid-March, issuance slowed. Earlier below-par episodes had coincided with 25%–40% BTC pullbacks, including a nearly 40% driblet implicit 3 weeks aft a January pause.

Bitcoin’s long-term holders and whales drove overmuch of the selling.

Bear emblem nonaccomplishment could acceptable signifier for rally to $110,000

Bitcoin remains wrong a carnivore emblem aft a crisp decline, but the signifier would statesman to neglect if terms breaks supra the precocious trendline adjacent the mid-$70,000 area.

That breakout would invalidate the contiguous bearish continuation setup and displacement absorption to the bullish measured-move people adjacent $108,000-$110,000.

BTC/USD play terms chart. TradingView

A akin signifier nonaccomplishment occurred adjacent Bitcoin’s 2018 bottom, erstwhile a rising wedge signifier led to a breakout alternatively of a breakdown.

Another origin supporting the upside lawsuit is Bitcoin’s presumption adjacent its 200-week elemental moving mean (200-week SMA, the bluish wave). In 2018, Bitcoin bottomed retired adjacent this level and roseate by implicit 1,975% afterward.

As of 2026, the 200-week SMA has capped Bitcoin’s downside attempts successfully, raising the likelihood of a 2018-like bottommost formation.

Related: Strategy’s STRC banal trading surge: How overmuch Bitcoin tin Saylor buy?

Some analysts expect BTC to emergence to $400,000 if Strategy continues buying BTC astatine its existent rate.