“With Bitcoin quickly nearing $31,000, stocks like MicroStrategy (MSTR) are exploding. All in hopes a Bitcoin ETF will finally be approved,” we noted on Oct. 23.
“MSTR last traded at $362.45 – up $14.41 on the day—and could push higher after breaking above its 50-day moving average. It’s also now above triple-top resistance. And if it can break above resistance around $388, it could potentially push back to $400,” we added.
Today, MSTR is up to $509.18 –and could see higher highs.
All as Bitcoin runs in hopes of a BTC ETF.
Also, Canaccord raised its price target to $554 from $513. They noted the “company continues to innovate in its dual strategy of being both an operating company and a modestly leveraged investment play in digital assets, and they continue to believe this strategy is working.”
BTIG analysts also raised their price target on MSTR to $520 from $490 a share. They added, “The company posted better than expected Q3 earnings and revenue thanks to its continued commitment to acquiring and holding bitcoin,” as noted by TheFly.com.
That’s why we remain bullish, long-term.
Immediate-term, there’s reason for caution.
If you pull up a one-year chart of MSTR, you can see it’s technically overbought. RSI, MACD, and Williams’ %R are all deep in overbought territory. That tells us to be cautious, as well. Should we see a pullback, it will likely be short-lived, and give us an opportunity to buy the dips.
