With Bitcoin Price Stuck Under $110K, Here’s Why It’s a Good Time to Sell MicroStrategy Stock

Bitcoin (BTC) continues to struggle as it ranges between $108K and $110K levels. While BTC remains in this uncertain state, Michael Saylor’s tech company, MicroStrategy (MSTR) stock, flashes multiple sell signals. The MSTR stock price appears poised to replicate the 2021 fractal amid declining bullish momentum. With such bearish signs, is it a good time sell MSTR Stock?

About Tech Firm MicroStrategy & MSTR Stock

MSTR stock has dropped 56% since November 18, 2024, and bounced 55% from the bottom to $364, where it currently trades, based on TradingView data. As of May 29, 2025, the stock is up 1.66% and is trading at $360.70 in the pre-market session. Bitcoin price, on the other hand, is up 0.61% today and trades at $108,462.

The Virginia-based tech firm MicroStrategy is the largest holder of Bitcoin (BTC) in the world, boasting a 580,250 BTC balance. The most recent purchase includes the acquisition of 4,020 BTC worth $427 million at the time. At the current price of $108,500 per BTC, MSTR’s holdings are worth $62.944 billion. The average purchase price is $69,979.00, roughly 35% lower than the current level.

Despite MicroStrategy’s impressive Bitcoin treasury, its stock price appears weak and is poised for a double-digit decline. The short-term outlook for Bitcoin price is bearish and hints at a crash.

Here’s Why MSTR Stock at $360 is a Good Sell

On the 1-week chart, MSTR stock price is showing signs of repeating the 2021 fractal. This fractal contains a few key elements that have already appeared, which adds credence to the possibility of repeating the bearish outcome.

1. Before forming a decisive top in 2021, MicroStrategy stock’s weekly candlestick rose 42.03% to $131.50 but closed 21.35% lower at $103.43. Such a candelstick with a large wick and a small body is termed “blow-off” top. In November 2024, the weekly candlestick rose 57.20% to $543.00. The impressive weekly gains were undone as the MSTR price dropped 22.31% and closed the week at $421.88. A pattern reminiscent of the 2021 price action.
2. During both blow-off tops, the Relative Strength Index (RSI) was oversold. The Awesome Oscillator (AO) produced lower highs, showing the exhaustion of the bull regime.
3. In 2021 and 2024, the attempt at recovery failed, leading to the creation of equal highs. The RSI created lower highs for the aforementioned swing highs, and so did AO, signaling exhaustion of bullish momentum.

History Rhymes: In 2021, the equal top formation was followed by a 182-day crash that caused the MicroStrategy (MSTR) stock price to lose 85% of its value, forming a local bottom at $13.41, a key demand zone. History is rhyming with the stock price, as it forms equal highs while the RSI declines, clearly indicating a slowdown in the bullish trend.

What’s Next? The weekly chart clearly shows a demand zone at $183.70, roughly 48.35% lower. Hence, investors can expect a 50% correction in the coming weeks for MSTR stock price.

Is MSTR a Strong Sell?

Yes. Based on the above outlook, MSTR stock price looks weak and shows all signs of a potential crash ahead. In a recent Bitcoin conference, Michael Saylor addressed mispricing when asked about Bitcoin crashing below the company’s NAV. Saylor replied,

“If something is mispriced at massive premium, we might sell to capture the premium, not drive the price down, but to capture the premium”

A clear flip of the equal highs with a weekly candlestick close above $437.61 will invalidate the aforementioned bearish thesis.

To conclude, the mid-to-long-term price prediction shows a ‘strong sell’ signal for Michael Saylor’s MSTR stock. Another reason supporting the bearish case is the weakness exhibited by Bitcoin over the past week. Many investors who bought MSTR before the approval of the spot Bitcoin ETF considered it a proxy for Bitcoin. So, a potential crash outlook for BTC could serve as headwinds for the stock price.