MSTR stock eyes rebound, Strategy’s Michael Saylor: Bitcoin’s not for sale
The MSTR stock price remains in a deep bear market amid the ongoing crypto winter.
- The MSTR stock price could be on the verge of a strong bullish breakout.
- Michael Saylor insisted that Strategy will not sell Bitcoin.
- Instead, he believes that the company will keep buying Bitcoin forever.
Strategy was trading at $138 on February 10, down sharply from the all-time high of $542. Its market capitalization has slumped from a record high of over $133 billion to the current $39 billion.
Technical analysis: MSTR stock poised for rebound
The weekly timeframe chart shows that the MSTR share price has remained in a bear market in the past few months as Bitcoin (BTC) has plunged from its all-time high of $126,300 to the current $69,000.
There are signs that the stock is about to bottom. The most important sign is that the Relative Strength Index has plunged to 27, its lowest level since June 2022.
Strategy, previously known as MicroStrategy, jumped by over 2,700% the last time the RSI moved to this level. It jumped from ~$20 to a record high of $542.
The spread of the two lines of the Percentage Price Oscillator has narrowed, a sign that a bullish crossover is possible.
At the same time, the stock has settled at the 78.6% Fibonacci Retracement level, a sign that a rebound may happen soon.
If this happens, the next key target to watch will be the 61.8% Fibonacci Retracement level at $216 followed by $232, its lowest level in March and April last year.
Saylor confirms Strategy will not sell Bitcoin
Meanwhile, Saylor, the company’s founder and chairman, maintains his bullish outlook on Bitcoin, arguing that claims over whether the company would sell were unfounded and that he will continue buying.
Strategy bought 1,142 coins last week, bringing the total holdings to 714,644, which are now valued at over $49 billion. The company remains in the red, with an average cost per Bitcoin of $76,052.
Strategy’s balance sheet also has over $2.4 billion in cash, which is enough to cover dividends and debt maturities. He said:
Saylor believes that Bitcoin will eventually bounce back as it has done in the last crypto bear markets. He also expects the coin to outperform traditional assets such as gold and the stock market.
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