Strategy (formerly MicroStrategy )- MSTR stock ended this week on a gloomy note, closing Friday’s session with a loss of over 4%.
According to the experts, the dip in MicroStrategy, now Strategy, stock could be attributed to the recent underwhelming performance of the Bitcoin price.
In addition, the discussions over MicroStrategy’s wallet moving massive BTC holdings to Coinbase have further weighed on the market sentiment.
However, Strategy Executive Chairman Michael Saylor has refuted the claims while advocating to “hodl” Bitcoin USD.
BTC price has struggled to hold above the $100k over the past few days, which has spooked traders.
Market participants also anticipate volatile trading in the broader crypto stocks sector, let alone the MSTR stock price.
Amid this, a top analyst has warned of MicroStrategy stock falling to as low as $120, suggesting a dip of 40% from the current price. To invalidate the bearish call, the crypto stock might reclaim a brief support in the coming days.
MicroStrategy (MSTR) Stock Slips, Here’s Why
MicroStrategy (MSTR) stock ended the session on Friday at $199.75, closing with a 4.22% decline from its prior session.
However, in the after-market hours, it recorded a slight recovery and traded at $200.57. Notably, the crypto stock has struggled in the negative territory over the past few weeks, amid a volatile trading environment in the broader digital assets space.
The MSTR stock was down around 18% this week and lost more than 33% over the last 30 days, reflecting the selling pressure in the market.
The dip comes as the BTC price struggled to stay in the positive territory. Besides, the flagship crypto has lost key support levels and fallen to as low as $94,000 in the last 24 hours.
As MicroStrategy often follows Bitcoin’s trajectory, the recent retreat in the crypto stock is understandable.
However, this has also sparked fear that if the Bitcoin price continues to slide, it may further amplify the selling pressure for the MSTR stock price.
What’s Next for MSTR Stock Price?
The uncertainty over MSTR stock amid the Bitcoin price dip has fueled concerns over the potential future movement of the asset.
Amid this, analyst Merlijn The Trader warns that MSTR is in a danger zone, with $200 as a major support level. If Bitcoin’s price falls to $90,000, MSTR could face significant pressure.
Another analyst, Ali Martinez, predicts a potential crash risk, with a possible rebound to $260 before dropping to $120. Looking at the current price of $200, the drop to $120 would mark a crash of 40%.
However, despite this, some analysts remain optimistic, citing MicroStrategy’s strong Bitcoin strategy and flexible balance sheet.
The company’s executive chairman, Michael Saylor, is also confident in the long-term prospects of MSTR stock.
Recently, Saylor has denied claims of MicroStrategy selling its Bitcoin holdings, which has further bolstered market confidence.
Despite that, investors should exercise caution because if BTC price fails to showcase a robust recovery, it could also weigh on the MSTR price ahead.