MSTR stock is about to move... Does the race begin with the first breakout of Bitcoin?
Analyst “Jamie Coutts” sees that Strategy (MSTR) stock shows one of its strongest technical signals this week, with several indicators concentrating around the $195 level, which could pave the way for a rise exceeding 45% if Bitcoin witnesses a new breakout.
The stock is recording trading volumes resembling “capitulation” phases with a hammer candle, in addition to technical intersections indicating a potential trend reversal.
Above the $195 area, the low liquidity range extends to $285, making the ascent rapid if demand returns.
JPMorgan's analysis supports this scenario, as it sees Bitcoin's direction linked to Strategy's ability to maintain its ratio between the company's value and its Bitcoin holdings above the level of 1, currently near 1.13 with a strong cash reserve.
The bank also believes that the stock's presence in the MSCI index could support a rebound in Bitcoin's price towards $170,000 in the medium term.
Nevertheless, the company continues to significantly reduce its pace of BTC purchases and may resort to selling part of its holdings as part of risk management plans.
However, other analysts see the stock as undervalued, as data from “CryptoQuant” indicates that the value of Bitcoin held by the company — about 650,000 BTC at a cost of $74,400 — exceeds its current market value by about 78%.
The stock is now trading around $186, far from its annual peak of $457.
