Here’s why Michael Saylor’s Strategy stock price is about to surge

Strategy stock price has remained in a tight range in the past few weeks as Bitcoin has consolidated. MSTR was trading at $375 on Tuesday, down by over 12% from its highest point this year and 30% lower than the all-time high. This article provides a MSTR stock forecast and the key levels to watch.

Strategy stock price technical analysis

The daily chart shows that the MSTR share price bottomed at $231.70 in February, where it formed a double-bottom pattern with a neckline at $342.80. 

A double bottom is one of the most bullish reversal patterns, which explains why it rebounded and reached a high of $429.87. The stock has now formed a bullish pennant pattern, comprising of a vertical line and a symmetrical triangle, a popular bullish reversal sign in technical analysis.

The two lines of this triangle are now nearing their confluence level, which happens before it stages a breakout. The profit target in a bullish pennant is estimated by first subtracting its lower side from its upper point.

In this case, one subtracts $231 from $429, giving the flagpole height of $198. The next stage is where one adds the breakout point to the height. This breakout level could be about $385, which will bring the target to $583, which is about 55% above the current level.

A drop below the support at $340 will invalidate the bullish Strategy stock price forecast. If this happens, the next point to watch will be the double-bottom point at $230.

Read more: This stock could nearly double your money in 2025—here’s why

The bullish case for MSTR stock

The main catalyst for Strategy stock is Bitcoin’s price action. A strong Bitcoin price surge will boost the value of its holdings and push its stock higher.

Strategy has continued to accumulate Bitcoins. In a statement this week, the company said that it acquired over 10,000 new coins, bringing its cumulative total to over 590,000.