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Seeking Alpha 2022-01-04 14:51:00

Bitcoin Is Not Acting Well

Since I wrote last week that bitcoin was acting better than the ARK Innovation Fund, despite their strong correlation, the cryptocurrency began consolidating below its 200-day moving average.Breaking below $45,000 is a big yellow flag, while declining below $40,000 would be an even bigger yellow flag.MicroStrategy holds bitcoin. Therefore, the stock price of this company does not reflect the prospects of its software business as much as the prospects of bitcoin. Furthermore, management is issuing debt on more than one occasion to buy more bitcoin.

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