The MSTR stock price has moved into a bull market this month as it jumped by more than 20% from its lowest level in September, while Bitcoin rebounded.
Summary
- MSTR stock has rebounded as Bitcoin price nears its all-time high.
- Technical analysis points to Bitcoin jumping to $131,250 in this cycle.
- MSTR may rebound and retest the important resistance at $450.
Strategy, the biggest treasury company, rose to an intraday high of $355, its highest level since Aug. 19. This rebound happened after it crashed by nearly 40% from its highest level this year and reached its lowest level since April 11.
MSTR’s rebound has mirrored the performance of other Bitcoin treasury companies like Metaplanet and Bullish, which have jumped by double digits in the past few days.
The rally coincided with the ongoing Bitcoin (BTC) price rebound as it moved from a low of $108,585 in September to $122,250 today. This is notable as Strategy is the biggest publicly traded Bitcoin holder with 640,031 coins worth $78 billion.
Technicals suggest that Bitcoin price has more upside, potentially challenging the all-time high of $124,200 and beyond. The chart below shows that Bitcoin has formed a bullish flag pattern, which is made up of a vertical line and a descending channel, resembling a hoisted flag.
The flag pattern and the Murrey Math Lines analysis point to an eventual Bitcoin surge to $131,250, which is the extreme overshoot level and 7.40% above the current level.
The odds of a Bitcoin price rally rose after ADP published a weak jobs report earlier this week. Its report showed that the private sector lost more than 36,000 jobs in September, much lower than the expected gains of 50,000. The Fed has now pivoted from focusing on inflation to the labor market, raising the possibility of another cut this month.
MSTR stock price technical analysis
The daily timeframe chart shows that the MSTR stock price has rebounded after bottoming at $293 in September.
This rebound happened after it formed the highly bullish falling wedge chart pattern, which is made up of two falling and converging trendlines. This pattern often leads to a strong bullish breakout.
It has now moved above the 50-day and 25-day Exponential Moving Averages, while the Relative Strength Index has pointed upward and crossed the neutral point at 50.
Therefore, the stock will likely continue rising as bulls target the psychological level at $462. A drop below the support at $300 will invalidate the bullish outlook.
