Why MicroStrategy Stock is Still A Good Buy Despite Bitcoin Slump

MicroStrategy (NASDAQ:MSTR) stock price is still up by 10.5% in the last five sessions’ performance relative to Bitcoin’s (CRYPTO: BTC) decline by 5.7% in the same period.

This is despite MicroStrategy revealing last week that it bought 1,070 BTC at an average price of $94,000. That is about 0.5% higher than BTC’s price as of this writing.

So, if Bitcoin’s decline extends toward the $90k support in the near-term, we should expect to see MSTR price to decline disproportionately.

But over a longer timeframe, MicroStrategy stock price has outperformed Bitcoin, yielding 452% in profit against the coin’s 102%.

That has led to claims that the company is overvalued but its investment strategy has paid off, with its current BTC holdings bought at an average price of $58,129.

That means the company’s current inventory of 447,470 BTC coins is still in substantial profit of more than 80%.

Looking ahead, a friendlier regulatory environment in the United States is likely to support Bitcoin’s upside despite the higher-for-longer interest rates.

That will provide an upside propulsion to MicroStrategy stock price. Institutional adoption of Bitcoin will play a key role in injecting more fuel to the crypto coin’s upside.

MicroStrategy Stock Price Prediction

MicroStrategy stock price pivots at $341 and the RSI indicator favours the continuation of the downside. Immediate support is likely to be at $326, but an extended control by the sellers could clear the path and send MSTR price to test $317.

On the flip side, the buyers will take control if the stock moves above $341. That will likely see the stock move highet to encounter the first resistance at $351.

Meanwhile, breaking above that level will invalidate the downside narrative. Also, a stronger upside momentum could extend gains and test $362.