MicroStrategy’s Latest Bitcoin Buy Triggers New Worries For MSTR Stock Price
Despite a $40 million Bitcoin purchase, MicroStrategy's stock price continues to slide, raising concerns about institutional support.Summary
MicroStrategy recently purchased an additional 592 Bitcoin for $40 million on February 23, bringing its total holdings to 717,722 BTC at an average cost of $76,020. However, this aggressive buying failed to halt the MSTR stock's decline; the stock fell over 9% on February 24 and remains down significantly over six months, suggesting it trades tightly as a leveraged Bitcoin proxy.
Technical indicators suggest growing institutional caution. The Chaikin Money Flow (CMF) indicator has flatlined near zero following the purchase announcement, indicating institutional indecision after previously showing accumulation during price dips. Furthermore, a bearish divergence on the Relative Strength Index (RSI)—where price made a lower high while RSI made a higher high—warned of weakening momentum and preceded the recent pullback.
The stock has broken down from a bear flag pattern, projecting further downside. Key support levels are $119 and $106, with a full technical projection pointing toward the $70 region if the $85 support fails. A sustained reversal would require MSTR to reclaim $139, with $155 needed to invalidate the current bearish structure.
(Source：BeInCrypto)