Chart of the day

Where do we stand fundamentally?

MicroStrategy (MSTR) has been actively expanding its Bitcoin holdings, recently acquiring 55,500 BTC for $5.4 billion, bringing its total to 386,700 BTC, worth over $36 billion. This aggressive strategy aligns with bullish forecasts for Bitcoin, especially with the upcoming halving event and potential spot Bitcoin ETF approvals, which could drive demand higher. Despite some stock volatility, the company’s bet on Bitcoin continues to pay off significantly, reinforcing its status as the largest corporate BTC holder

MSTR is pulling back in the second downside wave after the recent violent reversal from 550. An extension downside from here can lead to a test of the 230 level in the fourth long-term upside wave medium-term.

The target level in this third wave could be 230 level if we get a confirmed downside extension from here and a break below 370. MSTR downside reversal is supported by 500 and only a significant break above this level would lead to an invalidation of the downside.

_{Try a short trade entry with a stop loss above 520 to target 320 and lower. Trade it with a put option as well.}