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MSTR stock price rose by nearly 4% on Monday, August 11, as Bitcoin and other cryptocurrencies rallied. MicroStrategy jumped to $410, up from this month’s low of $366. This article provides a forecast for the stock as Bitcoin price eyes a surge to a new all-time high.
Strategy Continues Bitcoin Accumulation
MSTR stock jumped on Monday after Michael Saylor confirmed that the company continued Bitcoin accumulation last week. It bought coins worth $18 million, bringing its total holdings to 628,946, solidifying its role as the biggest Bitcoin treasury company.
In his statement, Saylor said the company had achieved a Bitcoin yield of 25%. Strategy uses the yield metric to calculate Bitcoin returns. It finds the percentage of its Bitcoin holdings against its assumed diluted shares.
Strategy’s Bitcoin holdings are now worth over $76 billion, against its market capitalization of over $116 billion, giving it a premium of 1.56. Its goal is to add as much Bitcoin as possible to its balance sheet. It is now in the process of raising funds worth $84 billion.
Bitcoin Price Action to Determine MSTR Stock Action
The main catalyst for the Strategy stock price is the performance of Bitcoin, which approached its all-time high of $123,200 today. It has now soared by over 60% from its lowest level in April, making it one of the best-performing assets in the market.
MicroStrategy does well when Bitcoin is in an uptrend because doing that boosts the value of its holdings. For example, its holdings will be valued at over $78 billion, up from the current $76 billion.
Technical analysis points to more Bitcoin price gains in the coming months after flipping an eight-year trendline. The weekly chart shows that the coin crossed the ascending trendline that connects the highest swings in January 2017, April 2021, November 2021, and January this year.
This trendline was also the upper side of the two rounded bottoms. A rounded bottom is a common bullish continuation sign.
Bitcoin also remains above the 50-month moving average, while the Average Directional Index (ADX) has risen to 40, signaling that bullish momentum is continuing. The Relative Strength Index (RSI) has also jumped to 73, which is bullish for the coin.
Therefore, the path of the least resistance is upwards, with the next target price being $125,000. A surge above that level will raise the possibility of it soaring to $150,000 later this year. Polymarket odds of the coin hitting $150k soaring to 44%.
MSTR Stock Price Analysis
Technical analysis points to a strong MSTR stock price surge in the coming days. It has already formed the highly bullish inverse head-and-shoulders pattern, whose head is at $230.
MicroStrategy stock has also formed a bullish flag pattern, which is then followed by a strong breakout. This pattern is made up of a flagpole and a channel. The flagpole’s bottom was at $230, while its upper side was at $430, giving it a height of $200.
Therefore, adding $200 to the upper side of the lag points to an eventual surge to $630, which is about 53% above the current level.
The other bullish catalyst for the MSTR share price is that it may be in the accumulation phase of the Wyckoff Theory. This view is based by the fact that MSTR stock has low volatility and volume.
The accumulation phase is then followed by the markup, where assets go parabolic amid rising demand.
MSTR stock price has been stuck in a tight range in the past few months, even as BTC jumped to a record high. This consolidation may be calm before the storm, as it has moved to the accumulation phase of the Wyckoff Theory. Therefore, it Strategy will likely jump and possibly to the resistance at $630.
