Why MSTR Stock Could Be Ready for a Major Upsurge Soon

TLDR

• MSTR stock has shown signs of a strong recovery after hitting a low of $152 earlier this month.
• A double-bottom pattern, a common bullish reversal signal, supports the stock’s rebound.
• Bitcoin’s recovery plays a crucial role in MSTR’s potential for further gains as the company holds significant Bitcoin assets.
• The Percentage Price Oscillator and Relative Strength Index both show bullish trends for MSTR stock.
• MSTR’s inclusion in major indices like MSCI reduces the risk of forced selling and adds stability to the stock.

MSTR stock has shown signs of stabilization this month, helped by the ongoing Bitcoin recovery. After plummeting by over 65% from its peak in 2025, investors have begun to buy the dip. With Bitcoin’s recent gains and other market developments, MSTR could be set for a major breakout in the near future.

Strategy Inc, MSTR

MSTR Stock Shows Signs of Bullish Momentum

MSTR stock recently bottomed at $152 earlier this month, but a strong rebound has brought it to $176. This recovery followed the formation of a double-bottom pattern, a commonly recognized bullish reversal sign. Chart analysis shows that the stock is currently in a bullish phase, with its upward momentum backed by key indicators.

The Percentage Price Oscillator (PPO) shows a clear bullish divergence. The two PPO lines are moving upwards and nearing the zero line, signaling potential for further gains. Meanwhile, the Relative Strength Index (RSI) has climbed from the oversold level of 23 to a current level of 52, suggesting increasing strength in the stock.

MSTR is one of the largest Bitcoin holders, with 687,410 coins valued at over $65 billion. As Bitcoin’s value recovers, MSTR stands to benefit directly, making it an attractive investment for those betting on Bitcoin’s continued growth. The stock’s performance is highly correlated with Bitcoin’s price movements, and its recovery has helped lift MSTR stock along with it.

Bitcoin’s price has been in a long-term bullish trend since December 2022. As it hovers near its lower support levels, it is expected to rebound, potentially reaching key resistance at $100,000. If Bitcoin continues to rise, MSTR’s Bitcoin holdings could appreciate further, providing additional upside potential for the stock.

Other Catalysts for MSTR Stock’s Potential Breakout

MSTR stock benefits from a strong market sentiment, as the company’s inclusion in major indices like MSCI has helped reduce the risk of forced selling. Recent data shows that MSTR’s market NAV stands at 0.96, indicating it is currently undervalued. The short interest in MSTR has also risen to 10%, which could set the stage for a short squeeze, further fueling its price growth.

With these factors in play, MSTR stock appears to be positioned for a strong breakout. As long as the stock remains above the key $152 double-bottom level, the upward trend is expected to continue. However, a drop below that level could signal further downside, potentially reaching as low as $100.

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