The MSTR stock price has stabilized over the past few days as Bitcoin has recovered from last week’s low of $83,000 to $93,000 today, boosting the value of Strategy’s Bitcoin holdings to over $60.45 billion.
The stock also rebounded after management noted that it had sufficient cash reserves to cover its dividends and debt payments, even when the market net asset value (mNAV) turns negative.
The CEO had previously sent shockwaves through the crypto industry by hinting that he would be willing to sell Bitcoin (BTC) to cover these payments.
Analyst Outlook on MSTR Stock
Wall Street analysts remain optimistic about Michael Saylor’s Strategy despite the ongoing crash, with a Mizuho analyst predicting that it will jump to $521 in the coming months. Such a move would mean a 177% surge from the current level.
Other Wall Street analysts are also bullish on the company, with the average rating of 24 analysts indicating it will jump to $396 over the next 12 months. Benjamin Budish, a Barclays analyst, believes that the stock will jump to $357, while a Bernstein pro sees it rising to $510.
The general view among these analysts is that MSTR will benefit from a strong Bitcoin price rebound. Also, there is optimism that the company is a bargain after plunging 65% from its 2024 high.
Risks and Technical Analysis
Still, MicroStrategy faces numerous risks, including the ongoing retreat of Digital Asset Treasury companies and the possibility of being removed from MSCI indices, a move that would trigger a forced sell-off of the stock.
MSTR Stock Price Technical Analysis
The daily timeframe chart shows that the MSTR stock price has crashed this year, falling from $455 in July to the current $188.
It recently flipped the support level at $232 into a resistance. This was a notable level as it was the lowest in February and April this year.
The stock remains below all moving averages and the Supertrend indicator, meaning that the downtrend remains intact.
It is also slowly forming a bearish flag or pennant pattern, which often signals further downside.
Therefore, the stock will likely remain under pressure in the coming days or weeks. A rebound to $396, as Wall Street analysts expect, will only be confirmed if it moves above the key resistance level at $232.
It will also be confirmed if the stock rises above the 50-day and 100-day Exponential Moving Averages.