- MSTR stock price has jumped from $106 in February to $138 today.
- Bitcoin may rebound in the near term as ETF inflows jump.
- Technical analysis suggests that the MicroStrategy stock may rebound to $187.
The MSTR stock price has held relatively steady, moving from the year-to-date low of $106 to $138 today. This rebound coincided with Bitcoin’s ongoing price stability, which has pushed it from last month’s low of $60,000 to $70,000 at the moment. This article explores why the MicroStrategy stock may rebound soon.
MSTR Stock Price May Rebound, Supported by Bitcoin Rebound
Strategy, formerly known as MicroStrategy, could be on the verge of a strong rebound this year. This recovery will occur because the likelihood of a Bitcoin price rebound is rising as the war in Iran ends.
In a statement earlier this week, President Donald Trump noted that the US goals were ahead of schedule and that the US would end the mission soon.
His statement helped calm the market, with crude oil prices crashing. Data shows that Brent and the West Texas Intermediate (WTI) dropped from nearly $120 on Monday to the current $90.
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Odds of the war ending in the coming weeks are also high because of the situation known as TACO, which stands for Trump Always Chickens Out. He has always changed his view, especially when market conditions get worse.
On Monday, he intervened after crude oil jumped to $150, while the stock market tumbled by over 2%.
Another bullish catalyst for Bitcoin is that investors have begun buying spot ETFs. Data shows that spot Bitcoin ETFs added $250 million in assets on Tuesday, after adding $167 million the day before. These funds have added over $986 million this month, ending a four-month streak of outflows.
A Bitcoin rebound would be bullish for Strategy, which has become the world’s largest holder. It currently holds 738,731 coins, worth over $51 billion, and Michael Saylor has pledged to continue accumulating.
MicroStrategy stock has also been substantially shorted. Its short interest has jumped to 12% from last year’s low of 5%. As such, the company may experience a short squeeze, which happens when a highly shorted asset surges.
Strategy Stock Price Technical Analysis
The daily timeframe chart shows that the MSTR stock price has rebounded, moving from a low of $106 to $138 today.
A closer look shows that the stock is attempting to flip the Supertrend indicator from red to green. Also, the Relative Strength Index (RSI) and the Percentage Price Oscillator (PPO) have formed a bullish divergence pattern.
Therefore, the stock will likely rebound and move to the next key target at $187, the 23.6% Fibonacci Retracement level. This price is about 40% from the current level.
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