MSTR Nears Make-Or-Break Price as Saylor Hints at Buying More Bitcoin
Strategy MSTR | 0.00 | |
Strategy Inc STRC | 0.00 | |
Shares Bitcoin Trust IBIT | 0.00 |
Strategy (NASDAQ:MSTR) stock price has retreated sharply this month and is now nearing a make-or-break level. It retreated for four consecutive days, reaching a low of $108, down by 42% from its highest point in May.
Michael Saylor Hints at More Bitcoin Buying
Strategy, formerly known as MicroStrategy, likely continued its dollar cost averaging approach last week. In an X post, Michael Saylor, its founder, hinted that the company bought more coins. He posted his orange dots image that he always whenever the company continues its accumulation.
The company has continued its Bitcoin (CRYPTO: BTC) purchases this year, adding 174,345 coins. It now holds 846,842 coins, currently valued at over $54 billion. Its holdings are significantly higher in value than those of the iShares Bitcoin Trust (NASDAQ:IBIT), which holds Bitcoin worth more than $48 billion.
Strategy sent shockwaves in the crypto industry earlier this month when it revealed that it sold 32 coins. In the aftermath, Bitcoin dropped below $60,000 for the first time this year.
While it has rebounded to $64,000, it is facing some major challenges, including the ongoing spot ETF outflows as investors rotate towards the booming stock market. The Federal Reserve also issued a highly hawkish interest rate decision that may affect its performance.
Technicals also suggest that the Bitcoin price signals that it has more downside in the near term. It has formed a bearish flag pattern and remained below all moving averages. A bearish breakout will likely push it to the year-to-date low of $59,000.
Bitcoin price chart | Source: TradingView
Meanwhile, the Variable Rate Series A Perpetual Stretch Preferred Stock (NASDAQ:STRC), which has started paying dividends two times a month, crashed to a record low of $88. It has now dropped by over 10% from its highest point this year amid concerns of its sustainability.
MSTR Stock Price is Nearing a Crucial Support Level
The daily chart shows that the Strategy stock has slumped from $196 on May 11 to the current $112.53. It has slumped below the 50-day and 100-day moving averages and the Strong, Pivot, Reverse of the Murrey Math Lines tool. It also formed a head-and-shoulders pattern.
MSTR stock chart | Source: TradingView
Most notably, the stock is nearing the crucial support of $103.40, its lowest point in February this year. If this happens, the next level to watch will be the extreme oversold level of $75.
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