The MSTR stock price struggled in November, plunging by over 40%, cutting its market cap from $83 billion to $51 billion. So, will Michael Saylor’s company continue its downtrend in December, or will it rebound?
MSTR Stock Price Technical Analysis
The weekly chart shows that the Strategy share price has been in a strong downward trend this year. It has plunged from a high of $446 in July to the current $177.
The stock formed a double-top pattern at $445 and a neckline at $230, and it has already moved below the neckline, confirming the bearish breakout.
Further, MSTR has fallen below its 100-week and 50-week Exponential Moving Averages (EMAs). Moving below these averages is a sign that bears are in control today.
It has moved below the Supertrend indicator, continuing the downtrend momentum. Also, it has moved below the bottom of the Murrey Math Lines trading range.
Meanwhile, the Relative Strength Index (RSI) and the MACD indicators have continued falling. The RSI has moved into the oversold territory at 28.
READ MORE: HYPE Price Forms Risky Pattern as Hyperliquid Woes Continue
Therefore, the most likely scenario is where the stock rebounds in December and retests the key target at $230. Such a retest will be a bearish sign as it will be a break-and-retest sign. Over time, the stock may drop to a strong pivot or reversal point on the Murrey Math Lines.
Strategy Stock to Depend on Bitcoin Price Action
The main catalyst for the Strategy stock price will be Bitcoin’s performance, as the company remains the largest holder, now holding 649,870, which is equivalent to $59 billion.
Analysts are highly bullish on Bitcoin, with many expecting it to reach the key resistance level at $100,000. In a note on Sunday, Michael van de Poppe, a top analyst, said that he expects the coin to jump to $100,000 in the next 1 to two weeks.
Other popular analysts have pointed to further gains for Bitcoin in December, with Ted Pillows expecting it to jump by 10% to 20% as the coin typically rises after the Thanksgiving weekend.
Tom Lee, the founder of FundStrat and the Chairman of BitMine, believes that the coin will eventually rebound and return to the all-time high of $126,300.
The main catalyst for Bitcoin’s price will be the Federal Reserve’s interest rate decision on December 15. A dovish Fed will push Bitcoin and other risky assets, such as MSTR, higher.
READ MORE: Top Cryptocurrencies to Watch: Ethereum, Jito, Pi Network
