MicroStrategy Inc. (NASDAQ:MSTR), a stock considered alternative Bitcoin (CRYPTO:BTC) investments received a bullish signal from moving average (MA) technical indicators.
What happenedAccording to financial market analysis platform TradingView, almost all simple and exponential MAs gave a ‘Buy’ rating for the stock, culminating in a net ‘Strong Buy’ signal.
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Moving averages smooth out price data by creating a continuously updated average price. When the price is above a moving average, the trend is generally up. If the price is below a moving average, it is in a downward trend.
On the contrary, the momentum indicators painted a different story. The Moving Average Convergence Divergence (MACD) indicator, which compares a stock’s short-term price to its long-term price, was giving a ‘sell’ signal at the time of writing.
Similarly, the Relative Strength Index (RSI) indicator, which is used to signal overbought or oversold conditions, showed a ‘neutral’ reading for the stock.
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MicroStrategy’s options trading market analysis also showed bearish sentiment.
According to market analytics platform Fintel, the stock had a Put/Call ratio of 1.2 at the time of writing, indicating that there are more downside bets than bullish.
Why it matters: MicroStrategy adopted Bitcoin as its primary reserve in August 2020, becoming the first publicly traded company to adopt this strategy.
Since then, it has increased in value by 1989% and has surpassed some of the biggest names on Wall Street, including artificial intelligence, darling Nvidia Corp. The company’s shares have outperformed the famed “Mag 7” group of companies in 2024, with a gain of 225% since the beginning of the year.
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MicroStrategy has approximately 252,220 BTCs, worth $17.37 billion, on its balance sheet, according to its recently released third-quarter earnings report.
The company announced it would raise $42 billion over the next three years through equity and debt financing to buy more Bitcoin.
