MSTR Stock Price Surge on $556M Bitcoin Purchase, But Analysts Warn of Crash, Here’s Why

Donald Trump’s trade war affected all financial markets, and the impact is also visible on the MicroStrategy (MSTR) stock price. The American development company has gone all in on buying BTC, as its founder, Michael Saylor, calls it the most useful asset. The same belief has made heavy returns from the company and affected its stock price positively. Just recently, it bought $556M worth of Bitcoin, resulting in a significant recovery in the stock’s performance. However, that is just one aspect, as analysts fear its crash next. Let’s discuss this.

MSTR Stock Price Reacts to $556M Bitcoin Buy

MicroStrategy has recently bought $556 million worth of Bitcoin in the last few days, bringing their total BTC holding to 538,200 BTC. The firm has sold 1.755 million MSTR shares between April 14 and 20, to take advantage of the ‘buy the dip,’ as BTC consolidated amid market uncertainty.

With year-long buying consistency and support for the digital asset, the MSTR stock price has witnessed significant growth. Before crashing to $237.95 amid the Trump trade war and stock market crash, it had a massive uptrend. At its peak, it surged to an ATH of $473.83. However, all that changed amid the rising uncertainty in the financial markets.

Even though MicroStegy’s stock price is up today, currently trading at $317.72 after a minor surge today and over the week, analysts fear a further crash.

MicroStrategy Stock Could Crash to $300 Next

Despite MicroStrategy’s Bitcoin buying, the MSTR stock price surged barely and is failing to break out of the trendlines’ resistance. Crypto analyst Rocky points out that though this stock is near the breakout zone, which could push it towards a high of $400, the failure to overcome the critical resistance is limiting its uptrend.

More importantly, he claims that if the stock fails in another attempt to surpass $320, MSTR could crash to $300 before attempting any recovery.

The stock has a failed breakout of trendline resistance today. Still around the breakout zone. $320 level break looking good for breakout towards $350 and $400.  If we see another failure of $320, we should see a retest of $300.

However, if it surpasses the key resistance amid high investor interest, the price could rally instead. A notable breakout would lead it to $400, but that’s just an anticipation. The stock market’s volatility could affect the trajectory significantly, as the rest of the crypto stocks’ prices already suffer.