MSTR back to the $400s | 7:1 RatioNASDAQ:MSTR has formed an inverse head and shoulders pattern on the 1-hour chart. Given that moves like this often depend on CRYPTOCAP:BTC 's price action, it's something to keep an eye on.
However, with NASDAQ:MSTR having dropped from nearly $500 per share, I believe we are in good value territory. Additionally, this trade offers a 7:1 risk-to-reward ratio if we attempt to front-run the completion of the pattern.
Microstrategy
Bitcoin’s Deja Vu: A Bullish Flag Unfolds Towards a Historic ATHIn March 202 0, ( COINBASE:BTCUSD ) Bitcoin reached a low on Friday the 13th , forming a bullish flag pattern that initiated a new upward cycle.
A similar formation appeared on August 5, 2024 , indicating the continuation of this bullish trend.
Currently, Bitcoin is at the PR3 price level, establishing a base support around $108,923 .
The next resistance is at QR1, approximately $197,491 . Upon reaching this level, a slight correction to around $145,669 is anticipated before continuing to the final all-time high (ATH) at QR2, set near $281,216 . From this peak, a significant correction to the correction support level (CS2) at $145,669 is expected.
Analysts are optimistic about Bitcoin's trajectory. H.C. Wainwright forecasts a rise to $225,000 by the end of 2025 , considering historical price patterns and potential favorable regulatory changes under the Trump administration.
Additionally, Standard Chartered projects Bitcoin could reach $150,000 in 2025, aligning with historical trends of major rallies post-U.S. presidential elections and following halving events.
However, Bitcoin's inherent volatility remains a concern. Predictions suggest potential corrections of 15% to 30% during the bull run before reaching higher price targets.
In conclusion, Bitcoin's current market structure and historical patterns indicate a bullish trajectory with potential significant price levels and corrections. Investors should remain vigilant and consider market volatility when making investment decisions.
MICROSTRATEGY a pyramid ponzi.Understanding the situation with MSTR can be quite complex.
Many people recognize that MicroStrategy has been issuing convertible bonds at a 0% interest rate to purchase Bitcoin. This strategy tends to drive up both Bitcoin's price and the value of MSTR shares.
As a result, the scheme appears to inflate continuously, placing the risk on bondholders. The only way for MSTR's stock price to keep rising is through the issuance of increasingly larger amounts of convertible debt; otherwise, the entire pyramid would collapse.
It's understandable why Michael Saylor seems to be focusing more on shilling MSTR bonds instead of Bitcoin itself.
Why would institutions invest in MSTR's convertible bonds at 0%?
Many believe it's because they anticipate being able to convert these bonds into MSTR stock in five years at a predetermined price, potentially around $675, effectively giving them a premium-free call option. However, there is a hidden cost to this strategy: inflation. At first glance, this might seem like a poor investment choice—if one expects MSTR's value to rise, it would make more sense to buy the shares now rather than commit funds to a higher price in the future.
Why would anyone engage in such a massive financial manoeuvre involving BILLIONS?
The truth is, those purchasing the bonds are ACTUALLY indifferent to the rising stock value! Their primary interest lies in capitalizing on price fluctuations. Ultimately, a convertible bond functions as a CALL OPTION; thus, as the MSTR stock price experiences greater volatility, the premium on the call increases. Recently the value of these convertible bonds has surged by 170%. This is precisely why investors are unconcerned about interest rates or the actual conversion of the bonds—they have ZERO desire to convert! The reason? Issuing new shares would only dilute their holdings!
All the rewards with none of the risks!
But what happens if MSTR collapses? Bondholders will seize all the Bitcoin MSTR possesses, leaving shareholders with nothing but scraps!
Can you fathom how deep this MSTR Ponzi scheme really is?
The more you explore, the more mental acrobatics you need to perform to grasp the situation!
Many believe that bond buyers are naive, but in reality, they are the sharpest players in the game, reaping the benefits without facing the risks! In the current climate, that’s the nature of volatility! It doesn’t matter if MSTR’s stock price fluctuates; they’re insulated from the fallout. Who do you think is betting against MSTR? It’s the bondholders, and their positions are secure!
Ultimately, for someone to profit, someone else must incur a loss, and it won’t be the bondholders. This means that regular shareholders are poised for significant losses, as the primary force driving MSTR’s stock price is its own volatility. Once that volatility dissipates, we could see MSTR plummet below $100 a share! All those crypto enthusiasts will be left reeling, wondering how MSTR could possibly decline while Bitcoin’s value rises!!!
What’s the main effect of these convertible bonds?
They create volatility in the stock price, leading to wild swings up and down, just as we’re currently witnessing.
What occurs when the volatility subsides?
The stock price will plummet!
Many people are misdirecting their focus on metrics, technical analysis, and listening to Michael Saylor's commentary on CNBC. Instead, they should be paying attention to the volatility of MSTR's stock price, as its decline will directly impact the stock's value.
Don't be misled; even if MSTR falls below $300, it will still be overpriced and could potentially drop to under $100 per share due to the convertible bonds scheme. Claims from MSTR valuation sites that each share is backed by a certain amount of Bitcoin are misleading; the reality is that the shares are not backed by anything.
The BONDHOLDERS are the ones who possess all the Bitcoin.
There’s no such thing as a free lunch—someone has to bear the costs, and in MSTR's case, that burden will fall on the shareholders. You certainly don’t want to be left holding the bag when the music stops.
It is important to maintain a clear perspective regarding cryptocurrencies; they should not be viewed as traditional investments, but rather as something more comparable to gambling.
While you may have the advantage of being an expert poker player, the only way to truly win is to cash out your profits.
Otherwise, you risk losing on MSTR and in the crypto market.
MicroStrategy - HAMMER TIME - Purely TechnicalComments:
For me, MicroStrategy is a purely technical and seems to track bitcoin more than its underlying product. It reach the year 2000's all-time highs.
Technicals:
Weekly Zoomed In:
Weekly hammer with volume at the 50%-61.8% fib level
Weekly Zoomed Out:
All-time highs
5EMAs strategy
RM KJ Trend Bounce
ADX extra confirmation
Bounce from horizontals support of the year 2000 all-time highs.
Targets: 800ish by June 2025
$MSTR appears to have broken the downtrendStill not 100% confirmed yet.
Price action dipped into the gap, although i would have liked to of seen a bit more time ~$275 to confirm
That would have shown a strong bounce off the .618 Fib as well, so I’m still bit skeptical.
It is very good that MSTR had a full 50% retracement tho from this move up.
I’m expecting it to range sideways at least for a few more days to confirm.
Volume has flipped bullish to suggest a trend reversal.
RSI fully reset to beginning of move.
Price closed above the EMA 9 & 21.
EMA 9 still has not crossed 21, so more hesitation.
Bulls need to step up BIG here for the Weekly Close.
It’s Not Over Yet for $MSTR: New highs in Q1Looking at MicroStrategy NASDAQ:MSTR
I’m watching the $320-$330 range for a potential buy opportunity. This zone represents key support, and I believe it could be an ideal entry point for a potential bounce if it holds.
If that price zone fails to hold, I will be potentially looking to add below $300 to fill the gap.
MICROSTRATEGY Is it shifting towards a new paradigm?Microstrategy (MSTR) is defying all odds during this bull run and recently it achieved perhaps its most important one: it broke above its All Time High (ATH) of $335.00 registered in March 2000. This historic feat took place on the same month (November) that it broke and closed above its historical Channel Up pattern, which has been dictating its trend since the bottom of the Dotcom Bubble correction in 2002.
This is perhaps ushering a new era for the company. Along with Bitcoin it may be shifting to a new paradigm and the uptrend may be accelerated in a similar way as it did in 1998 - 2000. Technically we will be in a position to know that if the current pull-back bounces of the top of the former historic Channel Up.
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Microstrategy - Might Break Lower Chart Pattern - Lower Crypto?Micro-strategy is currently hovering around the lower breakout point of the current Pennant or Triangle chart pattern. If this is not a fake out, it could signal lower prices to come for crypto's across the board.
If it holds, I expect it to move to the upper area of the pennant or triangle and if it breaks, we will see newer ATH for BTC and other Alt Coins.
BTC and the other major Alt Coins are all holding just above chart patterns that signal lower prices to come, so I expect lower prices, but with this lower volume during the holidays, manipulation is very possible from smart money and the market makers.
Trade carefully.
Microstrategy $MSTR at 50% Fibonacci Retracement Level📉 Stock Update: MicroStrategy NASDAQ:MSTR 💻✨
NASDAQ:MSTR found support at the 50% Fibonacci retracement level, but our proprietary algorithm has triggered a sell alert. ⚠️
Our strategy? Simple. We don’t short growth stocks or indexes. Instead, we wait patiently for the next buy alert to add to our current position. 🚀 Stay disciplined, stay focused.
#Stocks #TradingStrategy #MicroStrategy #GrowthInvesting
AISTR - Microstrategy onchainDigitized version of MSTR issuing bonds to buy cbBTC. Jesse bought a bag. Kel likes it. Plus the made a big tit girl in latex their mascot. Too many good signs to not buy a big bag under 10 million mcap. Target is a billy and then some
MICROSTRATEGY: Hit the 1D MA50 and bounced, but is it a buy now?MSTR has made a rapid turn from overbought to neutral on its 1D technical outlook (RSI = 48.944, MACD = 14.210, ADX = 17.986) as it reached today a -40% decline from its ATH but eventually hit the 1D MA50 and rebounded. This is the first contact with the 1D MA50 since September 19th. Even though it seems like a strong technical buy opportunity, Microstrategy has had its best buy entries in the last 2 years, under the 1D MA50. As this chart shows there have been 8 such buy signals, so even though the current rebound is tempting, we ideally want to see the price under the 1D MA50 and $300 before issuing a buy signal. Once this is filled, we can target the December 5th High minimum (TP = 400).
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MSTR: Prime Opportunity for a Rebound as Buyers Take Control Bullish Analysis for MSTR:
MicroStrategy (MSTR) has recently dropped alongside the broader crypto market, but strong buying momentum is emerging as buyers step in to buy the dip . The RSI is coming back from oversold levels, signaling potential for a rebound. As Bitcoin stabilizes and recovers, MSTR’s stock is likely to benefit from both the crypto rebound and its solid business fundamentals.
Trade Setup:
Take Profit 1: $370
Take Profit 2: $430
Stop Loss: $310
This setup offers a favorable risk-to-reward opportunity, with MSTR potentially poised for a bullish reversal.
MicroStrategy (MSTR) Stock Price Surged Over 60% in NovemberMicroStrategy (MSTR) Stock Price Surged Over 60% in November
According to the MicroStrategy Incorporated (MSTR) stock chart:
→ At the start of November, the stock price was around $244;
→ Last Friday, it closed just below $395;
→ This represents a more than 60% increase in MSTR’s price over the month, making it one of the top performers on the U.S. stock market;
→ At its peak on 21 November, the stock traded above $520, reflecting a 115% surge in just three weeks.
Two key drivers supported the bullish sentiment:
1. Bitcoin holdings by MicroStrategy.
According to Benzinga, the company owns nearly 2% of the global Bitcoin supply, a figure projected to rise to 4% by 2023. The current surge in BTC/USD towards $100,000 has significantly increased MicroStrategy's value. Co-founder Michael Saylor stated that the company earns an average of $500 million daily from its Bitcoin investments.
2. Market capitalisation milestones.
In November, MicroStrategy's market capitalisation exceeded $100 billion for the first time. On this note, Seeking Alpha highlighted the potential for MicroStrategy's inclusion in the Nasdaq 100 index. This could prompt large funds tracking the index to purchase MSTR shares for their portfolios.
Technical analysis of MSTR’s price chart indicates that since mid-September, price fluctuations have formed an ascending channel (marked in blue).
The decline from point A to B appears overly steep to be classified as a strict correction within the uptrend, which followed the achievement of extreme overbought conditions (visible on the RSI indicator).
While the stock rebounded upwards upon reaching the lower boundary of the channel (point B), the question remains whether the bulls can replicate November’s extraordinary success.
Buyers should exercise caution based on bearish price action around psychological levels:
→ The price failed to hold above $500.
→ On 22 November, the $450 level acted as resistance.
Meanwhile, according to TipRanks:
→ All 8 surveyed analysts recommend buying MSTR stock.
→ The average price target for MSTR is $494 within the next 12 months.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Crypto Stonks Are Booming! Top Crypto Stocks to Watch NowFrom Memecoins to Mega Stocks
While crypto traders have been focused on finding the next big memecoins like Doge , crypto-related stocks have also been performing well this year. In today’s analysis, we’ll dive into some crypto related stocks you might want to keep an eye on
1. Coinbase ( NASDAQ:COIN )
First on our list is Coinbase, the top US crypto exchange with a market cap of $48 billion. Since its IPO in April 2021, Coinbase has gained a reputation as a trusted exchange known for its regulatory compliance.
Besides its exchange services, Coinbase offers a self custody wallet popular among the crypto community, with over 10 million downloads. In February 2023, Coinbase launched its own layer 2 blockchain, Base , which has since recorded over $1 billion in total value locked and averages daily transaction volumes of over $400 million.
Coinbase has also played a part in advancing spot Bitcoin ETF approvals, forming a surveillance-sharing agreement with the Chicago Board Options Exchange in July 2023. Additionally, Coinbase partnered with **Stripe** in June to boost the global adoption of USDC. This partnership enables crypto payouts and a fiat-to-crypto onramp, making it easier for users to buy crypto with credit cards and Apple Pay through Coinbase Wallet. Coin is up over 350% since our first signal
2. MicroStrategy ( NASDAQ:MSTR )
Next up is MicroStrategy, with a market cap of $26 billion. Known for its business analytics software, cloud services, and AI-powered analytics, MicroStrategy is more famous for its Bitcoin holdings, driven by the advocacy of Executive Chairman Michael Saylor.
Under Saylor's leadership, MicroStrategy became the first public company to adopt Bitcoin as a strategic investment in August 2020, citing its potential as a store of value. The company accumulated over 121,000 BTC by late 2021 and continued adding to its holdings, despite price volatility and leverage risks. As of 2024, MicroStrategy’s Bitcoin holdings have reached 226,500 BTC, and the company’s stock hit new all time highs, demonstrating its strong correlation with Bitcoin's performance. Mstr is 100% up since our first signal
3. Block ( NYSE:SQ )
Formerly known as Square, Block is a fintech company founded by Jack Dorsey and Jim McKelvey, with a market cap of $38 billion. Starting with small-business payment solutions like Square POS, Block launched **Cash App** in 2013 to provide a user-friendly platform for consumers, competing with services like PayPal and Venmo.
Cash App generates revenue through transaction fees, subscription payments, and Bitcoin sales. It even supports the Lightning Network for quick Bitcoin transactions. Beyond payments, Block owns a majority stake in Tidal, a music streaming service, showing its diverse portfolio.
4. Robinhood ( NASDAQ:HOOD )
Lastly, we have Robinhood, with a market cap of over $15 billion. Founded in 2013 by Stanford graduates Vladimir Tenev and Baiju Bhatt, Robinhood became known for its free, user-friendly trading app, which gained significant popularity during the COVID19 pandemic
Robinhood found itself in the spotlight during the 2021 GameStop and WallStreetBets saga, where it faced backlash for restricting trades on memestocks like $GME. This led to a lawsuit and a $70 million penalty from FINRA for misleading customers and service outages. Despite this, Robinhood continues to grow, boasting 23.9 million funded accounts and nearly $130 billion in assets under custody as of May 2024.
Robinhood has made some notable moves recently, including acquiring Pluto Capital, which provides AI-driven investment advice, and securing a deal to acquire crypto exchange Bitstamp.
Wrap up
If you’re wondering about Bitcoin mining stocks, don’t worry we had a separate analysis just for that. Crypto Bull market just started and be ready for more analysis
which stock or crypto coins you are bullish now and why?