The beginning of the new month has been relatively carefree, considering that just earlier this week, Bitcoin was trading near $120,000. Now, it's crucial to see whether large players will take advantage of this dip and buy it up, or if the correction will continue, potentially leading to a broader downward move in the cryptocurrency market.

Meanwhile, Strategy, the well-known company led by Michael Saylor, has released a report announcing its intention to raise another $4.2 billion. It is evident that the company plans to use the proceeds to purchase more BTC. This move clearly demonstrates Strategy's and Michael Saylor's unwavering belief in Bitcoin's long-term potential. Despite the volatility of the crypto market and occasional critical remarks, the company continues to expand its position in BTC, viewing it as a strategic asset and a hedge against inflation. Raising such a significant amount for purchasing Bitcoin highlights the ambitious nature of Strategy's plans. It also influences the market by creating additional demand for BTC, potentially supporting its price.

At the same time, such an aggressive strategy raises concerns about risk concentration. Critics point out that a significant portion of Strategy's assets is tied to a single asset—Bitcoin—which makes the company vulnerable to sharp price fluctuations. However, Strategy's supporters emphasize their long-term investment horizon and confidence in BTC's continued growth. Ultimately, Strategy's decision to raise $4.2 billion for Bitcoin purchases is a bold and risky move that will be closely watched by market participants. It could support further growth in the crypto market, encouraging other companies to take similar steps and diversify their risks.

Trading recommendations

Bitcoin technical outlook Buyers are currently aiming to reclaim the $116,000 level, which opens the path to $117,500, and from there, it's a short distance to the $118,800 level. The furthest target is the high around $120,400, the break above which would confirm a strengthening bullish market. In the event of a drop, buyers are expected around the $114,000 level. A return of the trading instrument below this area could quickly push BTC down to around $112,000. The most distant bearish target would be the $109,600 zone.

Ethereum technical outlook A clear consolidation above the $3,690 level opens a direct path to $3,753. The furthest target would be the high around $3,828, a break above which would signal renewed buyer interest. If Ethereum declines, buyers are expected at $3,607. A move back below this area could quickly push ETH down to around $3,534. The furthest bearish target would be the $3,457 zone.

What's on the chart

• The red lines represent support and resistance levels, where price is expected to either pause or react sharply.
• The green line shows the 50-day moving average.
• The blue line is the 100-day moving average.
• The lime line is the 200-day moving average.

Price testing or crossing any of these moving averages often either halts movement or injects fresh momentum into the market.