Bitcoin price downside is weakening despite MicroStrategy's BTC buying spree

Bitcoin price is testing its immediate support at $19,000 following a failed mission that aimed for $20,000 earlier on Tuesday. Despite reports that MicroStrategy has been buying the pioneer cryptocurrency, its technical outlook will remain drab in the coming sessions.

MicroStrategy buys $6 million worth of Bitcoin

A persistent drop in Bitcoin price does not seem to have thwarted MicroStrategy's buying spree. According to a filing revealed by Michael Saylor, the founder, on Tuesday, the firm added 301 BTC worth roughly $6 million to its balance sheet between August 2 and September 19.

MicroStrategy announced that, during the period between August 2, 2022 and September 19, 2022, MicroStrategy acquired approximately 301 bitcoins for approximately $6.0 million in cash, at an average price of approximately $19,851 per bitcoin. https://t.co/J7nQ8zrYsL

— Wu Blockchain (@WuBlockchain) September 20, 2022

The purchase was the company's first since it scooped up 480 BTC in June, worth approximately $10 million. MicroStrategy now holds around 130,000 BTC ($3.98 billion), including those held by its subsidiaries.

Saylor recently stepped down as MicroStrategy's CEO and immediately took up the role of an executive chairman to double down on his efforts on Bitcoin. A recent report revealed that the firm's buying spree is unlikely to slow down – it is considering selling roughly $500 million of class A common stock in favor of the pioneer cryptocurrency.

"We intend to use the net proceeds from this offering for general corporate purposes, including the acquisition of bitcoin, unless otherwise indicated in the applicable prospectus supplement," the filing read in part.

Bitcoin price hunt for a floor price continues

Bitcoin price is yet to tag an established bottom level that will convince investors that downward pressure is over and the path with the least resistance is to the upside. However, the Direction Movement Index (DMI) indicator on the four-hour chart paints a grim technical picture.

Traders eyeing opportunities to short Bitcoin price should look for the DMI's –DI crossing above the +DI to avoid bear traps. It is worth mentioning that there is the possibility of a recovery stemming from BTC's buyer congestion at $19,000.

BTC/USD four-hour chart

IntoTheBlock's IOMAP on-chain metric shows that the chances of Bitcoin price climbing the ladder in the next few sessions are narrow. The most solid resistance runs from $21,437 to $22,044, where 916,000 addresses previously purchased roughly 537 BTC.

Bitcoin IOMAP metric

Bitcoin price's path to this region may not be smooth, ascribing to the relatively strong seller congestion zones spread between $19,752 and $22,044. Holders within this wide range are likely to sell as the price taps their respective breakeven points, dampening BTC's uptrend.