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The MSTR stock price has shown stability in recent days as Bitcoin has bounced back from last week’s low of $83,000 to $93,000 today, increasing the value of Strategy’s Bitcoin holdings to over $60.45 billion.
Summary
- The MSTR stock price has made a slight recovery this week as Bitcoin climbed to $93,000.
- Analysts on Wall Street predict that the stock could potentially double within the next year.
- Technical indicators suggest a possible rebound if the stock surpasses the crucial resistance level at $232.
The stock also saw a rebound after management assured investors that it has enough cash reserves to cover dividends and debt obligations, even if the market net asset value (mNAV) dips into the negative.
The CEO had previously raised eyebrows in the crypto landscape by suggesting a willingness to sell Bitcoin (BTC) to manage these payments.
Analysts on Wall Street maintain an optimistic outlook on Michael Saylor’s Strategy in spite of the ongoing market decline, with a Mizuho analyst forecasting a rise to $521 in the near future—equating to a 177% increase from its current price.
Other analysts on Wall Street also hold bullish views about the company. The consensus from 24 analysts points to a rise to $396 over the next year. Benjamin Budish from Barclays anticipates the stock will reach $357, while a Bernstein analyst projects a rise to $510.
The prevailing sentiment among these analysts is that MSTR stands to gain from a significant rebound in Bitcoin prices. Additionally, there’s a belief that the stock represents a good buying opportunity after dropping 65% from its peak in 2024.
Nonetheless, MicroStrategy confronts several challenges, including the ongoing retreat of Digital Asset Treasury firms and the risk of being removed from MSCI indices, which could lead to a forced sell-off of the stock.
MSTR stock price technical analysis
Strategy stock chart | Source: crypto.news
The daily chart indicates that the MSTR stock price has significantly declined this year, dropping from $455 in July to its current price of $188.
The stock recently converted the support level of $232 into resistance, a significant point as it was the lowest reached in February and April this year.
The stock remains beneath all moving averages and the Supertrend indicator, indicating that the downtrend is still in effect.
Additionally, it is slowly developing a bearish flag or pennant formation, which typically signals further declines.
As a result, the stock is likely to stay under pressure in the upcoming days or weeks. A recovery to $396, as expected by Wall Street analysts, would need confirmation through a move above the critical resistance level of $232.
Confirmation will also depend on the stock surpassing the 50-day and 100-day Exponential Moving Averages.
