Exactly two weeks ago, I wrote an article with a rhetorical question: “Why should you buy Strategy if you want exposure to BTC?” and argued that MSTR could fall—and fall hard.
Two days ago, BTC printed a new ATH. That move was visible in MSTR as well; however, we’ve got a lower high and a new fail for the stock.
Even more, this fail has formed the right shoulder of an H&S pattern.
On the weekly chart, there’s a strong bearish engulfing that ended exactly at the neckline of the pattern.
This type of price action is far from bullish, regardless of what one may want to dream of.
BTC is above confluence support. If it breaks this level, Strategy will fall even harder.
In my last post, out of 12 comments, 5 were hate comments—because “how can I say such enormities, that Strategy could fall.”
The answer is simple: the chart doesn’t look good at all.
Even if BTC reverses from this support, in my opinion the reflection in MSTR will be minimal.
And anyway, I trade what I see, not what Saylor sells me.
That being said, a drop of BTC under confluence support will most probably lead to a break below the neckline for Strategy. And if BTC delivers a meaningful correction, Strategy will fall like a giant with feet of clay that it is.
Two days ago, BTC printed a new ATH. That move was visible in MSTR as well; however, we’ve got a lower high and a new fail for the stock.
Even more, this fail has formed the right shoulder of an H&S pattern.
On the weekly chart, there’s a strong bearish engulfing that ended exactly at the neckline of the pattern.
This type of price action is far from bullish, regardless of what one may want to dream of.
BTC is above confluence support. If it breaks this level, Strategy will fall even harder.
In my last post, out of 12 comments, 5 were hate comments—because “how can I say such enormities, that Strategy could fall.”
The answer is simple: the chart doesn’t look good at all.
Even if BTC reverses from this support, in my opinion the reflection in MSTR will be minimal.
And anyway, I trade what I see, not what Saylor sells me.
That being said, a drop of BTC under confluence support will most probably lead to a break below the neckline for Strategy. And if BTC delivers a meaningful correction, Strategy will fall like a giant with feet of clay that it is.
📈 Forex & XAU/USD Channel:
t.me/intradaytradingsignals
💎 Crypto Channel:
t.me/FanCryptocurrency
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
📈 Forex & XAU/USD Channel:
t.me/intradaytradingsignals
💎 Crypto Channel:
t.me/FanCryptocurrency
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.