Strategy Breaks Its 13-Week BTC Buying Streak: Why MSTR Stock Still Bounced 6%
Despite ending a 13-week Bitcoin buying streak, MicroStrategy (MSTR) stock bounced 6.31% due to a bullish RSI divergence, though institutional money flow is waning.Summary
MicroStrategy (MSTR) stock experienced a 6.31% bounce after a bullish RSI divergence on the 4-hour chart, even though the company halted its 13-week Bitcoin buying streak. This bounce follows a pattern of three prior rallies triggered by divergences, but each has been smaller, coinciding with a decline in the Chaikin Money Flow (CMF), indicating fading institutional conviction. Currently, CMF is at its lowest point in this sequence. The stock's performance is highly correlated with Bitcoin (0.93 rolling 7-day correlation), meaning Bitcoin's recent 3% gain is supporting MSTR. However, this correlation is a double-edged sword, as a Bitcoin correction would likely pull MSTR down. Key price levels to watch are $128.98 (a close above confirms the bounce) and $117.61 (a break below suggests the bounce has failed).
(Source：BeInCrypto)