Strategy buying offsets bearish technicals… “A break above $70,000 could open the door to $110,000”

With Bitcoin (BTC) still holding a technically bearish pattern, an analysis says Strategy’s large-scale buying could offset downside pressure.

According to Cointelegraph on the 6th (local time), the market currently sees Bitcoin remaining in a “bear flag” (bearish continuation) phase. In general, this pattern signals the potential for further declines due to weak demand.

Still, Strategy has been rapidly absorbing supply and altering market structure. Since March 2, Strategy has bought an additional roughly 46,233 BTC, while only about 16,200 BTC were mined over the same period—absorbing about three times new supply.

The purchases were largely funded with proceeds raised through the issuance of the floating-rate preferred stock “STRC.” If STRC trades near par value ($100), additional issuance becomes possible, which in turn feeds into further Bitcoin purchases.

In fact, over the past week, it raised about $102.6 million via STRC issuance and bought $330 million worth of Bitcoin; Bitcoin’s price then rose about 6.65%.

Also, during March 9–13, it raised about $776 million to purchase more than 11,000 BTC, and Bitcoin gained more than 7% over the same period—contrasting with the S&P 500’s 1.6% decline.

However, if STRC falls below par, issuance could slow, and in similar past stretches Bitcoin has seen declines of 25–40%.

Technically, a breakout above the mid-$70,000s is cited as the key variable. If that level is cleared to the upside, the bear-flag pattern would be invalidated, potentially opening room for a move into the $108,000–$110,000 range.

Bitcoin finding support near the 200-week moving average is also viewed as a positive signal. In 2018, Bitcoin formed a bottom around that level and later rose about 1,975%.

Meanwhile, the outlet reports that some market participants say that if Strategy’s buying stance persists, Bitcoin could rise to $400,000 over the long term.