MSTR’s stock price fell for two days in a row and ended the week at $120, down sharply from its all-time high of $542. This decline may continue this week even as Michael Saylor hints at a resumption of Bitcoin buying.
Michael Saylor hints at buying Bitcoin after a week-long hiatus
There are chances that Strategy, formerly known as MicroStrategy, will restart its Bitcoin purchases last week. in Share XMichael Saylor said he was “back to work,” adding the orange dot chart representing the company’s weekly Bitcoin buying.
The strategy now holds 762,099 BTC, with a market cap of over $50.9 billion. The average purchase price of Bitcoin is $75,699, which means that the company has incurred a loss of 11.70%.
The company has room to continue its Bitcoin purchases now worth billions of dollars Shares in the money (ATM). It can be sold. It can sell its common stock and shares Preferred stocks, including STRC.
Using these shares to raise cash is risky for shareholders because it means more dilution, especially now that its net asset value (NAV) has fallen below 1, a sign of falling premiums.
The main risk to MSTR’s stock price this week is Donald Trump’s threat to escalate the ongoing war in Iran. In X’s post on Sunday, he noted that Tuesday would be “Power Plant Day” and “Bridge Day,” a move that would lead to lower prices. Bitcoin prices as we expected.
The strategy’s stock price is affected by Bitcoin’s price performance due to the huge amount of coins on its balance sheet. Continued decline will impact the value of their coins, resulting in higher unrealized losses. For example, if Bitcoin returned to its all-time high of $126,300, current holdings would be worth more than $96 billion.
Stock Price Forecast Strategy: Technical Analysis
The three-day chart shows that MSTR’s stock price has declined in the past few months. It has dropped from $456 in July last year to $120 currently.
It fell below the important support level at $232.7, the lowest level in March of last year. The stock formed a death cross pattern, with the 50-day moving average falling below the 200-day moving average.
The stock has remained below the Supertrend Index since August last year. In technical analysis, an asset remains in a bear market as long as it is below this indicator.
Therefore, MicroStrategy’s stock price is likely to continue falling, with the next target being the psychological level of $100. A drop below this level indicates further selling, perhaps to the key support level at $80.
