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MSTR Stock Price Could Dip 40% Despite New Bitcoin Buy?

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MSTR Stock Price Could Dip 40% Despite New Bitcoin Buy?

The MicroStrategy stock started the post-President’s Day session on a weak note. MSTR closed nearly 4% lower compared to its Feb. 13 (last Friday’s) close, reflecting renewed selling pressure despite positive corporate news.

This decline comes even after Strategy, previously MicroStrategy, added more Bitcoin, lowering its average purchase cost. However, charts now show that this latest BTC average drop didn’t mean much for the immediate fate of the MSTR. A much larger downside risk is forming beneath the surface.

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MicroStrategy’s Latest Bitcoin Buy Lowers Average Cost Only Slightly

MicroStrategy recently purchased 2,486 Bitcoin at an average price of $67,710. This latest acquisition increased its total holdings from 714,644 BTC earlier this month to 717,131 BTC.

Because this purchase was made below MicroStrategy’s previous average cost, it helped lower the company’s overall Bitcoin cost basis. MicroStrategy’s average acquisition price dropped from $76,052 (early this month) to $76,027 (at press time). This represents a $25 average cost reduction.

Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.

Strategy Cost Basis: Strategy

While this technically improves MicroStrategy’s balance sheet, the impact remains small relative to its total position.

The company still holds Bitcoin at an average cost above $76,000, which remains significantly higher than many earlier cycle acquisitions. More importantly, market indicators show that big money investors are not reacting positively, even to this development.

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Capital Flow Signals Strategy Investors Remain Cautious

One key indicator explaining investor behavior is the Chaikin Money Flow, or CMF. This metric measures whether large investors are putting money into a stock or pulling money out by combining price and volume data. When CMF stays above zero, it signals net buying pressure. When it falls toward zero or below, it shows capital inflows are weakening.

Strategy’s CMF has been trending lower and is now sitting close to the zero line, on the brink of breaking below. It is also approaching a critical ascending trendline support. This shows that despite the latest Bitcoin purchase, large investors are not aggressively accumulating the MSTR stock. Instead, capital inflows remain weak.

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MicroStrategy CMF
MicroStrategy CMF: TradingView

This lack of conviction becomes more concerning when combined with weakening momentum signals.

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Hidden Bearish Divergence Warns of Potential Major MSTR Price Correction

Momentum analysis using the Relative Strength Index, or RSI, shows a hidden bearish divergence forming. RSI measures buying and selling strength on a scale from 0 to 100 and helps identify weakening trends.

Between Dec. 9 and Feb. 13, MicroStrategy’s stock price formed a lower high, meaning the price failed to reach its previous peak. However, during the same period, RSI formed a higher high. This pattern is called hidden bearish divergence. It signals that sellers remain in control, and the downtrend is expected to continue. The MSTR stock price is down over 60% on a 6-month timeframe, highlighting the said downtrend.

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Bearish Divergence
Bearish Divergence: TradingView

This same signal appeared earlier between Dec. 9 and Jan. 14. After that divergence formed, MicroStrategy stock dropped more than 45%, falling to its recent low near $104. The appearance of a similar structure now suggests another correction could develop if selling pressure continues. But this time the correction can have similar consequences.

Bear Flag Structure Shows MSTR Stock Could Fall Much Further

MicroStrategy’s price structure now shows a bear flag pattern forming. A bear flag is a bearish continuation pattern where the price temporarily moves upward before continuing its larger downtrend. After falling sharply earlier this February, the MSTR stock rebounded. However, this rebound has remained within a rising channel that forms the flag portion of the pattern.

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MicroStrategy stock is currently trading near $128, very close to the lower boundary of this structure. If the price breaks below the $124 support level, the bear flag breakdown could begin.

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Based on the height of the previous decline, this breakdown could push MicroStrategy stock toward $71, provided support levels at $104 and 86 break. This would represent a decline of more than 40% from current levels.

MSTR Price Analysis
MSTR Price Analysis: TradingView

Recovery remains possible if buyers regain control. A move above $139 would weaken the bearish outlook, while a full recovery above $155 would invalidate the bearish structure entirely.

However, the bearish setup could also invalidate even without a sharp breakout. If the price continues rising slowly and the current channel extends beyond half of the original pole’s height, the bear flag would lose its validity. In that case, the structure would shift from a bearish continuation pattern into a broader recovery channel, reducing the immediate downside risk.

For now, MicroStrategy has successfully lowered its Bitcoin cost basis slightly. But capital flow weakness, bearish divergence, and fragile price structure all suggest that this small improvement may not be enough to prevent a larger stock correction.

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Crypto World

HBAR Bears Face $4.9 Million Squeeze as Price Direction Shifts

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HBAR Liquidation Map.

Hedera has posted a muted recovery in recent sessions. HBAR price remains constrained by cautious sentiment across the broader cryptocurrency market. Uncertainty in Bitcoin and macro conditions continues to cap upside attempts.

However, bearish traders may need to monitor changing signals. Derivatives positioning and capital flow indicators suggest the current balance could shift.

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Hedera Traders Could Be In Trouble

HBAR is currently experiencing strong bearish positioning in the futures market. Traders have opened a notable number of short contracts, reflecting expectations of further downside. The liquidation map highlights that positions are skewed toward bears at current levels.

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Data shows that HBAR bears could face approximately $4.9 million in liquidations if the price crosses the $0.1143 mark. Such forced liquidations can trigger rapid upside volatility. When short positions unwind, buying pressure increases as traders close contracts.

Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.

HBAR Liquidation Map.
HBAR Liquidation Map. Source: Coinglass

The Chaikin Money Flow indicator offers additional insight into capital movement. CMF measures inflows and outflows to assess whether buyers or sellers dominate. The indicator is currently rising, although it remains at the zero line.

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An upward slope at zero suggests that outflows are at par with the inflows. However, the gap will likely diminish as inflows rise. Declining outflows often precede a shift toward net inflows. If this transition occurs, HBAR could gain the support needed for a short-term recovery.

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HBAR CMF
HBAR CMF. Source: TradingView

Bitcoin Is Unhelpful

Correlation trends also support a potential shift. HBAR’s correlation with Bitcoin has declined in recent weeks. The current coefficient has dropped to 0.09, signaling weaker alignment with the crypto market leader, inching closer to completely dissociating with Bitcoin.

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Reduced correlation can benefit altcoins during periods of Bitcoin uncertainty. If HBAR decouples further, price action may reflect investor-specific demand rather than broader market weakness. This flexibility could allow HBAR to chart an independent recovery path.

HBAR Correlation To Bitcoin
HBAR Correlation To Bitcoin. Source: TradingView

HBAR Price Has a Few Barriers To Breach

HBAR is trading at $0.1019 at the time of writing. The altcoin remains above the key $0.0961 support level at the 38.2% Fib line. However, it faces resistance at $0.1035, which aligns with the 50% Fibonacci retracement. This level currently caps upward momentum.

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Flipping $0.1035 into support would mark a short-term breakthrough. Combined with declining outflows, this shift could fuel a recovery rally. HBAR would then target $0.1109 at the 61.8% Fibonacci.

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This level is considered a critical support for an asset, and flipping it would likely trigger stronger buying among the investors, pushing the HBAR price higher.

This would bring HBAR past $0.1143, a level that threatens $4.9 million in shorts liquidations. Sustained strength could extend gains toward $0.1215 and $0.1349 eventually, helping recover year-to-date losses.

HBAR Price Analysis.
HBAR Price Analysis. Source: TradingView

If bullish signals fail to materialize, consolidation may continue. Persistent outflows would limit breakout attempts. A breakdown below $0.0961support could expose HBAR to further downside near $0.0870. Such a move would invalidate the near-term bullish outlook and reinforce bearish control.

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Kraken Acquires Tokenization Platform Magna Ahead of Potential IPO

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Kraken Acquires Tokenization Platform Magna Ahead of Potential IPO

Payward, the parent company of cryptocurrency exchange Kraken, has acquired tokenization platform Magna, expanding the company’s infrastructure.

Kraken said Wednesday the acquisition would allow Magna to operate “as a standalone platform, powered by” the crypto exchange. The company’s announcement said Kraken would use the platform for “onchain and offchain vesting, white-label token claims, custody and escrow workflows, specialized staking functionality” and other functions.

“Joining Kraken gives us the resources to support existing and new clients with institutional-grade infrastructure, deeper liquidity, and global distribution,” said Magna CEO Bruno Faviero.

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According to Kraken, Magna serves more than 160 clients with a peak total value locked of $60 billion in 2025. The acquisition is the latest move by the exchange this month, following an integration with ICE Chat, and its move to sponsor “Trump Accounts” under an initiative pushed by US President Donald Trump.

Related: Kraken parent Payward revenues jump 33% as crypto traders pile in

Kraken submitted a confidential initial public offering filing with the US Securities and Exchange Commission in November, signaling a potential IPO in the future. The company reported $2.2 billion in adjusted revenue for 2025.

In 2025, Payward acquired crypto native prop company Breakout, futures trading platform NinjaTrader, derivatives trading platform Small Exchange and software company Capitalise.

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Other crypto companies mulling US IPOs in 2026

Crypto hardware wallet provider Ledger, headquartered in France, was reportedly discussing a potential public offering in the United States, with a valuation of $4 billion. Digital asset custodian Copper, based in London, was also reportedly considering a similar move into the US markets, while Securitize, a tokenization platform, reported in January that the company’s revenues were up over 840%, in an SEC filing ahead of plans to go public.