Bullish Technical Analysis on MicroStrategy

A bullish technical analysis pattern is emerging on MicroStrategy’s (MSTR) price chart, contrasting with Bitcoin (BTC) patterns that warned of recent market declines.

The MicroStrategy pattern is a double bottom, consisting of two consecutive troughs at similar prices, indicating downtrend exhaustion. A trendline, called the neckline, is drawn through the high point between these troughs. A move beyond this trendline confirms a breakout, signaling a bullish trend change.

This pattern is especially significant after a notable decline, as observed in MSTR’s case, where the gap between troughs and the high exceeds 35%.

The chart shows a double bottom forming around $230 since late February, with neckline resistance marked by an early March recovery to $320.94. A breakout above this resistance would confirm the double-bottom pattern and suggest a potential rally to $410 based on the gap theory from the troughs to the neckline.

Additionally, the stock price has broken through its downtrend line, indicating a reversal from the previous high of $543.

BTC Pattern Comparison

This emerging double bottom in MSTR contrasts with BTC’s double top observed earlier in the year. The double top pattern, identified in late February, predicted a price drop to $75,000, ultimately causing BTC prices to slide from over $91,000 to as low as $76,800.

Key Observations:
– Double bottoms and tops typically exhibit low failure rates, indicating that confirmed breakouts or breakdowns likely lead to sustained price movements.
– MicroStrategy is the largest publicly listed Bitcoin holder, with a total of 499,096 BTC, valued at approximately $41.5 billion.