MSTR Stock Price Breaks 30-day Downtrend as Michael Saylor Reveals Why Strategy Will Outperform Bitcoin

Strategy (NASDAQ: MSTR) stock price has ended a 30-day downtrend after surging by 8% on June 15 to open trading at $133. The rally follows an admission by Strategy’s executive chairman, Michael Saylor, that the company has the potential to outperform Bitcoin despite concerns around its STRC preferred stock trading below par.

The MSTR stock price is also gaining amid the acquisition of $100 million more Bitcoin by Strategy on June 15, bringing its total holdings to 846,842 coins. Strategy has now bought 3,137 BTC since selling 32 BTC between May 26 and May 31.

MSTR Stock Price Ends Month-Long Downtrend as Resistance Breaks

MSTR stock underwent a sharp correction between May 15 and June 10, with the price dropping from $182 to $115. However, the last three trading days have seen a notable rise in price, with Strategy shares jumping from $113 on June 11 to $133 at the time of writing.

A previous CoinGape MSTR stock analysis had established $133 as a strong resistance level for the shares. Bulls are testing this resistance after today’s 8% gain, and if Strategy shares can close above $133 for three straight days, MSTR could officially enter an uptrend.

The end of the 30-day downtrend is because of both macro and micro factors. On the macro side, President Donald Trump has confirmed that the Strait of Hormuz is going to reopen, and that led to analysts like Peter Brandt predicting a stock price rally.

On the micro front, Strategy purchasing another $100 million in Bitcoin on June 15 has eased concerns that the company is cash-strapped and might have to sell more BTC to pay dividends on preferred stock.

Michael Saylor Says Strategy Will Outperform Bitcoin

Saylor has once again taken to X to defend Strategy’s Bitcoin play, saying that the company has the potential to perform even better than Bitcoin as long as the return on BTC is more than the cost at which it bought the coins.

Saylor also defended Strategy’s STRC preferred stock that is trading at $95, well below its $100 par, saying that a Bitcoin treasury company that does not have preferred shares would trade like an exchange-traded fund (ETF).

“As liabilities increase, Bitcoin per Share (BPS) and Common Equity Bitcoin Exposure (CEBE) diverge, creating the potential to outperform Bitcoin,” Saylor stated.

But Saylor’s thesis that MSTR stock can outperform Bitcoin as long as the cost of acquiring it is lower than the average returns on BTC is under stress because of STRC’s drop to $95.

This drop in STRC raises the cost at which Strategy is buying Bitcoin, which weakens Saylor’s case that the company could outperform Bitcoin.

MSTR Stock Price Sets Up Rounded Bottom Recovery

The MSTR stock price is undergoing a rounded bottom pattern recovery that suggests bulls are about to regain control as buying pressure gradually increases.

The neckline resistance of this rounded bottom is at $133, and the Strategy share price needs to make three straight closes above it to confirm that this pattern is indeed in play.

If the three straight closes are achieved, the MSTR stock price could rise by 17.9% and reach $157.

The AO bars that are negative but remain in the negative region show that bears are losing their grip, and bulls might succeed in flipping $133 from resistance to support.

The RSI reading of 42, however, shows that bears still have an upper hand even if the selling pressure is easing.

Failing to close above $133 for the next three trading days could invalidate the rounding bottom, and MSTR shares might drop to test the support at $120.