Should you buy MicroStrategy as stock returns 58% and cryptos turn up?
MicroStrategy Incorporated (NASDAQ:MSTR) has borne the brunt of a bear crypto sentiment. As the corporate entity with the largest stash of Bitcoin, the market crash pushed the stock to $150. That compares to an all-time high above $1,300 in February 2021. However, we remain optimistic about the stock as it is now attractively priced.
Total gains of 58% in a month for MicroStrategy is a call to invest. It was a matter of when cryptocurrencies will recover and MicroStrategy stock will gain. Bitcoin is hovering around $23,000 with miles to make before it can reclaim the former highs.
We can’t ascertain that the bear market is over yet, but we can certainly expect it to end. MSTR will recover and return huge to investors. Unless you are not a believer in Bitcoin, there is no other reason not to add MSTR to a portfolio.
MSTR rallies but meets a resistance
Source – TradingView
Technically, MicroStrategy stock bottomed at $166. That is the reference level to watch as the stock turns bullish. The MACD indicator remains in the bear zone. However, the MACD line has moved above the moving average, suggesting a building of bullish momentum.
MSTR has met resistance at $296, and investors could exit after the latest gains. Should the crypto sentiment weaken again, MSTR could correct towards the $166 support. That would open new buying opportunities. That can also be said if bulls fail to clear $296. We recommend buying MSTR on a retracement or a break above the resistance.
MicroStrategy stock is turning bullish as cryptocurrencies start to rise. The stock is attractive after the monthly gains. We recommend buying on a retracement or a breakout of the $296 resistance.
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