$MSTR fell to 154, down 6.37% in 24 hours, with a trading volume of 258 million. This isn’t an issue specific to MSTR this time—BTC fell below 83,000, and the global bond selloff dragged down crypto-related stocks across the board. $COIN and $HOOD fell too, while Tom Lee over at Bitmine is still saying that buying demand for ETH is about to dry up.
The logic behind MSTR is pretty awkward right now: essentially, it’s a leveraged BTC proxy. If BTC falls 8%, MSTR can fall 12%. The low for this move so far is 152.71. That level is interesting because it corresponds to BTC around 82–83K, a previous area of heavy trading.
My personal take: don’t chase the short term to the downside. If BTC can hold above 82K, you could try a small long position in the 152–153 range, with a stop below 148. If that breaks, it would signal that BTC may be heading toward 78K. Resistance is at 165; consider trimming your position if it rebounds there. MSTR’s premium has been narrowing lately, which isn’t a good sign for the stock…
$MSTR
#MicroStrategy
The logic behind MSTR is pretty awkward right now: essentially, it’s a leveraged BTC proxy. If BTC falls 8%, MSTR can fall 12%. The low for this move so far is 152.71. That level is interesting because it corresponds to BTC around 82–83K, a previous area of heavy trading.
My personal take: don’t chase the short term to the downside. If BTC can hold above 82K, you could try a small long position in the 152–153 range, with a stop below 148. If that breaks, it would signal that BTC may be heading toward 78K. Resistance is at 165; consider trimming your position if it rebounds there. MSTR’s premium has been narrowing lately, which isn’t a good sign for the stock…
$MSTR
#MicroStrategy
