Shares

MicroStrategy Stock Analysis: Will Bitcoin’s Rally to $81,000 Push MSTR Higher?

Published by
Written By: Lilly Mwogah
Share
    Summary:
  • MicroStrategy stock rides Bitcoin's rally to $81,000 with unrealized gains surpassing $10B. Will MSTR break resistance and soar higher?

MicroStrategy (NASDAQ: MSTR) is firmly in the spotlight as Bitcoin approaches $81,000. This post-election rally has sparked fresh optimism across the crypto space, with MicroStrategy benefiting from its massive Bitcoin stash. But how far can MSTR ride this wave?

Bitcoin’s Rally Lights Up MicroStrategy

Bitcoin’s rise has been truly astonishing, reaching an intraday peak of $81,827. This is fantastic news for MicroStrategy. The firm possesses more than 252,000 Bitcoins, acquired at an average cost of $39,266. At the current price, those assets have a value of approximately $20.5 billion, resulting in unrealized gains exceeding $10 billion.

MicroStrategy’s approach has consistently been straightforward: invest heavily in Bitcoin. Up until now, it’s yielding benefits. Nonetheless, the issue is whether this rally has further potential for growth, particularly as investors become wary regarding valuation.

MSTR Stock: A Closer Look at the Chart

MicroStrategy’s stock has been on a solid run, hitting a recent high of $279.38 before settling at $270.42. The chart shows a clear uptrend, but some key levels stand out:

  • Support levels: The 20-day EMA at $231.27 and the 50-day EMA at $198.97 provide a safety net.
  • Resistance levels: The $280 mark is critical. A surge in this area could pave the way to $300, particularly if Bitcoin keeps up its momentum. Investors need to observe the stock’s response this week, especially as Bitcoin approaches new peaks.
MicroStrategy Daily Chart Analysis

Valuation Risks Loom Large

Even with its progress, MicroStrategy’s worth is drawing attention. The stock is currently valued at almost three times the worth of its Bitcoin assets. Although the optimistic Bitcoin sentiment is fueling demand, certain analysts caution that this gap might introduce risks, particularly if Bitcoin’s surge starts to decelerate.

What’s Next for MicroStrategy?

MicroStrategy remains a bold play on Bitcoin. If Bitcoin hits $100,000, MSTR could see another leg up. But with the stock already priced at a premium, any pullback in Bitcoin could trigger a sharp correction.

For now, MSTR is riding the crypto wave. Whether it can sustain the momentum will largely depend on Bitcoin’s ability to keep climbing. As always, investors should tread carefully with such a volatile asset.

This post was last modified on Nov 11, 2024, 09:05 GMT 09:05

Written By: Lilly Mwogah

Lilly Mwogah is a finance writer specializing in cryptocurrencies, forex, and indices. Passionate about simplifying complex financial topics, she creates engaging content for a broad audience. With a solid grasp of market trends and economic indicators, her work informs and empowers readers to navigate the dynamic finance world.

Published by
Written By: Lilly Mwogah