- The MSTR stock price has pulled back in the past few days.
- Bitcoin price has retreated from $79,000 to $76,000.
- The stock may still rebound and retest the key resistance level at $200.
The MSTR stock price has stalled over the past few days, moving from this month’s high of $183 to its current level of $170. This retreat may continue in the foreseeable future as the recent Bitcoin price rally wanes and the Crypto Fear and Greed Index moves to the neutral point.
Bitcoin Price Rally Stalls as Fear and Greed Index Falls
The Strategy stock price has pulled back in the past few days despite the ongoing Bitcoin accumulation. In a statement, Michael Saylor revealed that he continued accumulating Bitcoin last week.
Strategy bought 3,273 coins for $255 million at ~$77,906 per Bitcoin. It now holds 818,334 coins, worth over $62 billion, making it the industry’s largest holder. The company plans to continue accumulating this year, supported by its common shares and other preferred instruments.
Strategy’s main concern is that it will continue diluting its existing investors by selling its shares. It has boosted its outstanding shares from over 75 million a few years ago to over 330 million today.
Another potential concern is that the Bitcoin price has pulled back in the past few days, moving from nearly $80,000 to the current $76,000. It has failed to move above the important resistance level at $80,000 in the last crypto bull run. That is a sign that investors are afraid to buy the coin above that price.
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At the same time, the Crypto Fear and Greed Index has lost momentum, moving from the greed zone of 62 earlier this month to the neutral point at 42. A move back to the fear zone will lead to more panic selling among investors.
A Bitcoin price reversal will lead to a retreat in MSTR stock price due to the close correlation between the two assets.
Additionally, there are concerns that crude oil prices have continued to rise, with Brent and West Texas Intermediate (WTI) hitting $110 and $97, respectively. These soaring prices mean that the Federal Reserve will likely maintain a more hawkish tone, which will hurt Bitcoin prices.
MSTR Stock Price Technical Analysis
The daily timeframe chart shows that the Strategy stock price has pulled back in the past few days, moving from a high of $183 to the current $170.
On the positive side, the stock has moved slightly above the 100-day Exponential Moving Average (EMA). It also remains slightly above the key support at $152.80, its highest point on March 17 this year.
Therefore, despite the rising risks, there is a likelihood that the stock will rebound, potentially to the ultimate resistance of crude oil at $200, which is slightly above the current level of $170. The alternative scenario is where the stock retreats and retests the key support at the $152.
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