A bullish formation is being established by Strategy, mirroring Bitcoin’s recent breakout. As resistance is being tested, a possible retreat to a strong support level may initiate a rally toward all-time highs.
The stock of Strategy (MSTR) is currently being traded within a bullish market structure, closely resembling the recent price action of Bitcoin. Due to its history of aggressive Bitcoin accumulation, MSTR has maintained a strong correlation with the cryptocurrency’s movements, and this correlation is expected to potentially drive the stock toward new all-time highs. As a critical resistance level is being tested, the current setup indicates that either a direct breakout may occur or a bullish retracement could unfold, paving the way for a continued upward move.
The ongoing price movement of MSTR has been characterized by a persistently bullish structure. A swing low was previously established, after which a series of higher highs and higher lows have been consistently formed—an indication typically associated with a continuing upward trend. At present, a critical resistance zone is being tested. Should this level remain unbroken, a brief corrective phase may be observed.
A potential pullback could cause the price to retreat toward the $362.50 support zone, which holds significant technical alignment. This level is marked by the convergence of the value area low, the 21-day exponential moving average, and the 200-day moving average. If a correction leads to this region, a higher low may be established, forming a structural foundation for a subsequent upward advance.
Significantly, if a breakout occurs above the present high without a preceding correction, it would be interpreted as a display of robust bullish momentum. Sustained buying activity would be indicated, enhancing the probability of the price entering discovery mode and establishing new record highs—mirroring Bitcoin’s recent upward movement. Given MSTR’s tendency to reflect Bitcoin’s price behavior, this technical setup further strengthens the positive market outlook.
Anticipating the Next Move: Key Scenarios for Upcoming Price Action
If the $362.50 support region is maintained by MSTR or the existing resistance is surpassed without retracement, the likelihood of the stock advancing toward all-time highs would be substantially elevated. Market participants are advised to monitor for either a well-defined retracement or a decisive breakout, as both developments would be indicative of sustained upward momentum.
