Strategy's price chart is about to flash a major bullish signal weeks after bitcoin did
MicroStrategy (MSTR) is approaching a 'golden cross' technical signal, where its 50-day moving average crosses above its 200-day average. While historically associated with bullish momentum, the signal has a mixed track record of accuracy for the stock.
Why it matters
As a major corporate holder of Bitcoin, MicroStrategy's stock performance is closely watched as a proxy for institutional crypto market sentiment.
Weeks after bitcoin’s (BTC) price chart flashed a major bullish signal, Strategy MSTR $135.98 · Market Closed , the largest publicly listed accumulator of the cryptocurrency, is about to do the same.
The signal, a golden cross, occurs when a security’s 50-day average price rises above its 200-day average. Some traders read the transition as a decisive bullish shift in momentum that can lead to a prolonged rally.
For MSTR, which holds $69.81 billion in bitcoin, the cross could happen as soon as Monday. Since the company began buying the largest cryptocurrency for its balance sheet in August 2020, the stock has had two such crosses, and huge rallies followed both.
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