- The MSTR stock price remained pulled back on Thursday.
- This decline coincided with Bitcoin’s fall from $83,000 to $80,000.
- Technical analysis suggests that the stock will likely rebound in the near term.
The MSTR stock price pulled back on Thursday as Bitcoin retreated on US-Iran war fears. Strategy dropped to $179.60, a few points below this week’s high of $190. Still, the stock remains in an uptrend that may push it to $250 and beyond.
MSTR Stock Drops as US-Iran Jitters Remain
Strategy, the world’s largest Bitcoin Treasury company, pulled back amid concerns about the ongoing US-Iran war. This decline mirrors that of the broader stock market, with the Dow Jones Industrial Average and the S&P 500 falling by over 0.50%.
There are signs that the US and Iran will engage in more combat, which may push crude oil prices to the highest level in years. Indeed, Brent and the West Texas Intermediate (WTI) rose to $101 and $97, respectively, after reports of huge explosions at Kharg Island.
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Still, on the positive side, Bitcoin has several bullish catalysts that may drive further gains in the coming days or weeks. The most notable one is the ongoing accumulation by American investors, who have bought ETFs worth over $1.7 billion this month. They have now added nearly $5 billion in the last 3 months.
Bitcoin has also formed a large ascending triangle, which typically leads to further gains over time. This pattern consists of a diagonal trendline and a horizontal resistance level and is one of the most common bullish continuation signs in the market. As such, the coin may soon jump to $90,000, pushing its asset value to nearly $74 billion.
The ongoing MSTR stock pullback followed the company’s Tuesday financial results announcement. Its numbers showed it lost over $12 billion in the last quarter, after shedding over $14 billion in the previous one.
In a major shift, the firm said that it may be open to selling Bitcoin for the first time. It would do that, possibly, to fund its dividends or pay back its debt.
Strategy Share Price Technical Analysis
The daily chart shows that MSTR stock price has rebounded over the past few weeks, rising from its year-to-date low of $103 to the current $180. This pullback is occurring after it retested the 23.6% Fibonacci Retracement level at $186.8, a common scenario.
The stock has moved above the 100-day Exponential Moving Average (EMA), while the Supertrend indicator has turned green for the first time since April last year.
Therefore, the most likely MSTR share price forecast is bullish, with the next important target being at the 38.2% Fibonacci Retracement level at $238. If this happens, the stock will rise 33% from the current level. A move above that price will point to more gains towards the 50% retracement at $280.
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