Strategy’s Latest Bitcoin Buy Drops Average by $25 —Why MSTR Stock Could Drop More
MicroStrategy's latest Bitcoin purchase slightly lowered its average cost, but technical indicators suggest MSTR stock faces significant downside risk.Summary
MicroStrategy (MSTR) stock closed nearly 4% lower despite the company acquiring 2,486 more Bitcoin at an average of $67,710, which marginally lowered its overall average purchase price from $76,052 to $76,027—a reduction of only $25.
Despite this balance sheet improvement, technical analysis suggests caution. The Chaikin Money Flow (CMF) is trending near zero, indicating weak capital inflows from large investors. Furthermore, a hidden bearish divergence between the stock price (lower high) and the Relative Strength Index (RSI) (higher high) suggests selling pressure remains dominant, mirroring a pattern that preceded a 45% drop previously.
The price structure is forming a bear flag pattern. A breakdown below the $124 support level could trigger a significant correction, potentially pushing MSTR stock toward $71, representing a drop of over 40% from current levels. While a move above $155 would invalidate this bearish outlook, current indicators point toward continued downside risk.
(Source：BeInCrypto)