Benzinga
Published May 19, 2022 22:06
Updated May 19, 2022 22:40
MicroStrategy Forms Bullish Pattern As CEO Saylor Forecasts Bitcoin Will Reach "Into The Millions"
MicroStrategy, Incorporated (NASDAQ: MSTR) was surging more than 10% higher on Thursday in tandem with Bitcoin (CRYPTO: BTC), which was trading almost 5% higher despite the S&P 500 struggling to trade flat.
The business intelligence and cloud-based services company, which holds about 129,218 Bitcoins according to its first-quarter earnings release, has been trading in a steep downtrend since March 29.
In an interview on Yahoo Finance Live on Thursday, MicroStrategy CEO Michael Saylor said he expects Bitcoin to reach more than a million dollars in the future and that he believes the crypto is the currency of the future.
Bitcoin has a lot of work to do to reach its Nov. 10 all-time high of $69,000 and MicroStrategy is currently trading down more than 80% from its all-time high of $1,315 printed on Feb. 9, 2021. The stock has settled into a bull flag, however, and if the pattern is recognized, MicroStrategy could be in for a 70% move to the upside.
The bull flag pattern is created with a sharp rise higher forming the pole, which is then followed by a consolidation pattern that brings the stock lower between a channel with parallel lines or into a tightening triangle pattern.
For bearish traders, the "trend is your friend" (until it's not) and the stock may continue downwards within the following channel for a short period of time. Aggressive traders may decide to short the stock at the upper trendline and exit the trade at the lower trendline.
The MicroStrategy Chart: MicroStrategy’s bull flag was formed between May 12 and Thursday, with the pole created on the first four days of that timeframe and the flag forming over the trading days since. The measured move, if the pattern is recognized, could cause MicroStrategy to soar up to the $335 level.
See Also: Imagine A World Where You Can Access Both Traditional Assets And Crypto Assets From The Same Account
Photo: phive via Shutterstock
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Read at Benzinga
Read the original article on Benzinga
Written By: Benzinga
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.