TRENDING:

EUR/USD

GBP/USD

How many days before Bitcoin hits margin call price of $21,000?

Mike “Mish” Shedlock's Sitka Pacific Capital Management,Llc

Michael Saylor, CEO of MicroStrategy, borrowed money to buy Bitcoin. He has stated that he gets a margin call if Bitcoin tumbles to $21,000.

Margin call

Saylor tries to defuse fears

Pledge more assets

Amazing arrogance

Bitcoin weekly chart

Bitcoin chart courtesy of StockCharts.Com

Technically speaking, Bitcoin is on the tip of a major precipice. The next support level is somewhere in the $17,500 to $19,000 level.

That does not guarantee or imply Bitcoin will fall that low, but, this is a bear market and support levels tend to break.

Moreover, the fact that everyone knows where the pain level is, tends a bit to be self-fulfilling.

Thinking this through

Saylor says he will simply pledge more assets. Well that will do nothing but set an even lower pain level.

This can cascade spectacularly.

MSTR chart courtesy of StockCharts.Com, annotations by Mish

MSTR does it again

This time, MicroStrategy (MSTR) is trading like a speculative leveraged play on Bitcoin (because it is a speculative leveraged play on Bitcoin).

How many days before a margin call?

Stablecoin crash: Luna drops 86% in one day, Yellen seeks regulation

And in case you missed it, please see Stablecoin Crash: Luna Drops 86% in One Day, Yellen Seeks Regulation.

Author

Mike “Mish” Shedlock's

Sitka Pacific Capital Management,Llc

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

Pi Network Price Forecast: Bearish streak nears critical support trendline

Pi Network (PI) edges lower on Friday for the third consecutive day, approaching a local support trendline. The on-chain data suggests an increase in supply pressure as Centralized Exchanges (CEXs) experience a surge in inflows.

Top Crypto Gainers: Zcash rallies as MYX Finance, Dash test critical EMA levels

Zcash , MYX Finance, and Dash are the top-performing assets in the top 100 cryptocurrency list over the last 24 hours. The privacy coin leads the rally while MYX and DASH struggle to clear their 100-day Exponential Moving Averages (EMA).

XRP slides amid record on-chain activity, mixed technical signals

Ripple is trading under pressure at the time of writing on Thursday, after bulls failed to break the short-term resistance at $2.22. The reversal may extend toward Monday’s low of $1.98, especially if risk-off sentiment persists in the broader cryptocurrency market.

Aster lags recovery as perpetual DEX releases new roadmap on infrastructure, utility and ecosystem

Aster is consolidating above $1.05 at the time of writing on Thursday, reflecting lethargic sentiment in the broader cryptocurrency market. The token native to the perpetual DEX had recovered from Monday's low of $0.88 but stalled around $1.08 on Wednesday.

Orange Juice Newsletter – Smart insights by real people. Every day.

A free newsletter highlighting key market trends to help traders stay a step ahead. Daily insights on the most relevant trading topics, compiled by our experts in an easy-to-read format so you never miss an important move.

Bitcoin: BTC steadies as data suggests local bottom

Bitcoin (BTC) hovers around $91,000 at the time of writing on Friday, extending its recovery by 5% so far this week. On the institutional front, a modest outflow from US-listed spot Bitcoin Exchange Traded Funds (ETFs) marks a slowdown from previous weeks and signals a reduction in selling pressure, further supporting BTC’s recovery.

How many days before Bitcoin hits margin call price of $21,000?