The MSTR stock price has held relatively steady in the past few days, continuing a consolidation phase that started in February.
Strategy was trading at $140 on Monday, a few points above the year-to-date low of $106.
Analyst predicts Bitcoin price may be on the cusp of a bullish breakout
The MSTR stock price has remained in a narrow range in the past few weeks as the recent sell-off ended.
This recovery may be about to end as Bitcoin price continues rising.
BTC jumped to $74,000 on Monday, up by 23% from its lowest level this year, and analysts believe that it may jump to $100k in this bull run. In a note to Bloomberg, an analyst at BTSE said:
“If the conflict looks as if it’s drawing to an end, Bitcoin could very easily recover quickly and retrace back towards the $100,000 mark. If the conflict is likely to drag on, Bitcoin could dip back towards the $60,000 mark.”
Bitcoin price is rising amid the ongoing BTC ETF inflows.
Data compiled by SoSoValue shows that spot Bitcoin ETF inflows have jumped by over $1.3 billion this month so far, a sign that investors believe that BTC has become a safe-haven asset as the war in Iran has continued.
Bitcoin has jumped by 12% since the war started, while gold has pulled back.
Also, the SPDR Gold Trust has shed assets in the last two weeks, a sign that investors are selling the news as the war was already priced in.
Bitcoin may also continue rising as fear in the industry eases.
Data shows that the Crypto Fear and Greed Index jumped from the extreme fear zone of 5 earlier this year to the neutral level of 41 today.
This means that it may soon jump to the greed zone, where investors tend to boost their purchases.
All these developments will benefit the MSTR stock price as the company has become the biggest Bitcoin holder in the industry today.
The company holds 738,730 coins valued at over $54 billion, and Michael Saylor has hinted that the buying spree continued last week.
MSTR stock price technical analysis
Strategy stock chart | Source: TradingView
The daily timeframe chart shows that the Strategy stock price has remained in a narrow range in the past few weeks. It has jumped from the year-to-date low of $106.24 in February to the current $140.
The stock is about to flip the Supertrend indicator from red to green. It is also about to move above the 50-day Exponential Moving Average (EMA).
There are signs that the stock is in the accumulation phase of the Wyckoff Theory.
As such, there is a likelihood that the stock will rebound and potentially move to the 23.6% Fibonacci Retracement level at $187.
Such a move would be a 34% from the current level.
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