Microstrategy Stock Crash Gets Crypto Bulls' Attention, Key Support Test In Play
Chris Kimble | May 13, 2022 11:00AM ET
MicroStrategy (NASDAQ:MSTR) is a tech company selling its enterprise software solutions and analytics (platform), but it is better known for something else…
It’s CEO, Michael Saylor, is a Bitcoin whale. And he has been investing significant amounts of the companies reserves in Bitcoin. He even secured a term loan using Bitcoin as collateral.
So Microstrategy is a Bitcoin play as much as anything else. Well, Bitcoin and the cryptocurrency space has been hit hard of late, with Bitcoin falling under $30,000 and other crypto coins tanking.
This is also illustrated through today’s “monthly” chart of
As you can see, MSTR has been trading within a rising trend channel for the past two decades. And after hitting the topside of the channel and its 61% Fib retrace of all-time highs, Microstrategy’s stock price has fallen 90%.
It is now testing 20-year rising trend support at (1). Crypto bulls are hoping this support holds. If not, it would be a big warning sign to the cryptocurrency arena.
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