In this daily bar chart of MSTR, below, I can see that prices corrected lower from the middle of July but have been holding above the rising 200-day moving average line since late September. Prices have been strong Monday and tested the 50-day moving average line.
In this daily Japanese candlestick chart of the continuous bitcoin futures, below, I can see where bitcoin futures have rallied sharply Monday but have also rejected the highs.
Tests of the rising 200-day moving average line have been seen in the past two months but that does not rule out a downside reversal and potential break of the line in the days and weeks ahead.
In this weekly Japanese candlestick chart of MSTR, below, I can see a mixed picture. Prices have been holding and creeping higher above the 40-week moving average line. The weekly trading volume has been shrinking over the past few months and that is not a positive development.
The weekly OBV line has moved sideways since early July. The MACD oscillator has been weakening since July.
In this daily Point and Figure chart of MSTR, below, I can see a potential upside price target in the $427 area but there is plenty of potential overhead chart resistance to blunt a rally.
In this weekly Point and Figure chart of MSTR, below, I can see a downside price target in the $229 area.
Bottom line strategy: I am a skeptic on the subject of bitcoin and I would avoid the long side of bitcoin and the long side of MSTR.
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