12.08.202510:19 Forex Analysis & Reviews: Bitcoin quickly loses all recent gains

Yesterday, Bitcoin and Ethereum quickly gave up all their gains after large purchases seen during Asian trading hours. However, this profit-taking can be considered largely speculative, as major market players continue to build positions.

On Tuesday, Japanese asset management company Metaplanet acquired another 518 Bitcoins. The purchase amounted to approximately $61.4 million, signaling the company's continued accumulation of the world's largest cryptocurrency. Listed on the Tokyo Stock Exchange, Metaplanet reported that it bought the latest batch of 518 BTC at an average price of about $118,519 per Bitcoin. According to CEO Simon Gerovich, this latest acquisition has brought the company's total holdings to 18,113 BTC, purchased for $1.85 billion at an average price of $101,911 per coin.

The disclosure of this purchase followed the company's announcement earlier this month of plans to raise up to 555 billion yen through the issuance of new perpetual preferred shares to support its Bitcoin acquisition strategy.

Meanwhile, Strategy — the largest corporate Bitcoin holder — also reported additional purchases. Data shows the company acquired another 155 BTC at $116,401 per coin. Strategy now holds 628,946 BTC, accumulated since 2020 at a total cost of around $46.09 billion, with an average purchase price of $73,288 per coin.

Such strategies have sparked significant interest in the investment community, especially against the backdrop of instability in traditional financial markets. The companies mentioned appear to view Bitcoin as a long-term tool for preserving and growing capital, hedging against inflation and volatility in national currencies. Acquiring significant volumes of Bitcoin naturally impacts the cryptocurrency market — the increased demand from such large-scale purchases supports Bitcoin's price and creates a positive backdrop for further growth.

Trading recommendations

Bitcoin

Buyers are now aiming to reclaim the $119,300 level, which would open a direct path to $120,900, followed by $122,300. The ultimate target is the $124,200 area. A breakout above it would confirm a stronger bull market. In case of a decline, buyers are expected around $117,500. A drop below this area could quickly push BTC toward $115,600, with $114,100 as the most distant downside target.

Ethereum

A sustained move above $4,363 would open a direct path to $4,500. The ultimate target is the $4,632 area; a breakout above it would signal a renewed wave of buyer interest. In the event of a decline, buyers are expected around $4,216. A drop below this area could quickly push ETH toward $4,077, with $3,941 as the most distant downside target.

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.