Overview
A bullish technical pattern is reportedly evolving on the price chart of MicroStrategy (MSTR), which could signal a shift towards a bullish trend. This pattern, known as a double bottom, consists of two consecutive troughs that appear at similar price levels, indicating a potential exhaustion of downward momentum. A significant price breakthrough above the neckline drawn through these points would confirm a change from a bearish to a bullish trend.
Key Insights
- A bullish double bottom pattern is forming on MicroStrategy’s price chart, indicating a potential shift to a bullish trend.
- The recent price movement stands in contrast to the double-top formation seen in Bitcoin (BTC) earlier this year, which predicted a market decline.
- Research indicates that double bottoms and tops tend to have low failure rates.
Analysis
The development of this pattern is particularly relevant following a notable price drop of MSTR. According to technical analysis principles, the gap between the two troughs should be substantial to signify a strong potential for upward movement—ideally, at least 10%. In MSTR’s case, this gap exceeds 35%. A price movement above the resistance level would not only confirm the double bottom but also signal a beginning of a renewed bullish trajectory.
While the price chart suggests that MSTR has faced resistance at around $320.94 in early March, signaling a potential breakout target towards $410. MSTR is recognized as the largest publicly traded holder of Bitcoin, maintaining a substantial portfolio of 499,096 BTC, valued at approximately $41.5 billion.
For further details, refer to the full article on CoinDesk.
