Should you buy Bitcoin? Saylor prepares for a massive purchase

Bitcoin Below Its Cost Basis: Panic or Golden Opportunity?

The crypto market experienced a bloody weekend. The price of Bitcoin underwent a notable correction, pushing the asset’s value below the cost basis of many holders, particularly short-term investors. Technically, this zone is critical: it often acts as a major psychological threshold.

When the spot price drops below the realized price of short-term holders, the market often enters a phase of fear. The “weak hands” tend to capitulate, selling at a loss to avoid prolonged exposure to volatility. This is precisely the type of flush out that analysts monitor to identify a local bottom.

However, for industry veterans, this signal is often interpreted differently. A drop below the cost basis may indicate that the asset is oversold, creating an attractive entry window for institutional investors and whales who are patiently waiting to scoop up liquidity at low prices.

“More Orange”: The Buy Signal Bulls Have Been Waiting For?

Amid this bearish sentiment, an influential voice rose to reassure maximalists. Michael Saylor, executive chairman of MicroStrategy and fervent Bitcoin advocate, posted a laconic yet powerful message on X (formerly Twitter): “More Orange”.

In the community’s jargon, this reference to Bitcoin’s iconic color is almost universally interpreted as an accumulation signal. Saylor has a habit of announcing his purchases or teasing MicroStrategy’s fundraising rounds through this type of cryptic communication just before or during a massive DCA (Dollar Cost Averaging) phase.

If MicroStrategy takes action, it could inject significant buying pressure into the market. The company already holds a colossal share of the circulating supply and continues to use convertible debt to accumulate more BTC, taking advantage of every retracement to strengthen its treasury.

Should You Follow the Whales and Buy Now?

The current situation divides analysts. On one hand, technical indicators show short-term weakness, with a risk of revisiting lower support levels if buying volume doesn’t materialize quickly. On the other hand, on-chain fundamentals remain solid, and the interest from entities like MicroStrategy suggests that smart money isn’t panicking.

Bitcoin’s history has often shown that the best buying opportunities present themselves when market sentiment is at its lowest and the price drops below the average cost basis. If Saylor’s tweet materializes into an official purchase announcement in the coming days, it could act as a catalyst for an immediate bullish reversal.

Traders must remain cautious, however. Volatility remains extreme and leverage on derivatives markets could still trigger cascading liquidations before a true recovery begins. Monitoring ETF flows and institutional announcements will be crucial this week.

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