MSTR stock has been stuck in a tough downtrend during the ongoing crypto winter, but fresh technical signals suggest the worst may be close to over. At the same time, Strategy’s co-founder and chairman, Michael Saylor, is making it clear that Bitcoin isn’t going anywhere.
On February 10, Strategy’s stock (MSTR) was trading around $138. That’s a steep fall from its all-time high of $542, reflecting the broader slump across crypto-linked assets. The company’s market value has taken a similar hit, sliding from a peak of more than $133 billion to about $39 billion today. Even with these losses, traders are starting to spot signs that a rebound could be forming.
Technical signs point to a possible turnaround
Looking at the weekly chart, MSTR has been locked in a bearish trend for months, mirroring Bitcoin’s own pullback from its record high of $126,300 to around $69,000. However, momentum indicators are flashing early hints that selling pressure may be fading.
One key signal is the Relative Strength Index (RSI), which has dropped to 27. That’s a deeply oversold level and the lowest reading since June 2022. The last time MSTR’s RSI hit this zone, the stock went on a massive rally, surging more than 2,700% from around $20 to its record high.
Other indicators are lining up as well. The gap between the two lines of the Percentage Price Oscillator has narrowed, often a precursor to a bullish crossover. At the same time, the stock has found support near the 78.6% Fibonacci retracement level, a zone traders often watch for potential trend reversals.
If MSTR does start to climb, the next levels to watch are around $216, which marks the 61.8% Fibonacci retracement, and then $232, an area that acted as support in March and April last year.
Saylor: Bitcoin is “not for sale”
Beyond the charts, Strategy’s long-term bet on Bitcoin remains unchanged. Michael Saylor recently dismissed speculation that the company might sell its Bitcoin holdings, saying those claims are unfounded. In fact, Strategy continues to add to its stack.
Just last week, the firm bought another 1,142 BTC, bringing its total holdings to 714,644 bitcoins. At current prices, that stash is worth more than $49 billion. Despite the size of its holdings, the company is still sitting on unrealized losses, with an average purchase price of $76,052 per Bitcoin.
Strategy’s balance sheet includes more than $2.4 billion in cash, which Saylor says is enough to cover dividends and upcoming debt maturities. He stressed that the company’s leverage remains at investment-grade levels. “We will not be selling,” Saylor said, adding that he expects Strategy to keep buying Bitcoin every quarter indefinitely.
Looking ahead, Saylor remains confident that Bitcoin will recover, just as it has in previous bear markets. He also believes the cryptocurrency will eventually outperform traditional assets like gold and stocks, reinforcing Strategy’s long-term commitment to its Bitcoin-first strategy.
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