Is the market impact coming? Analysts say strategic inventory could crash.
According to market observer Sir Jazz, the strategy’s stock (MSTR) could drop sharply before rebounding. He believes the stock could be as low as $350. Then, once sold dry, the new push could restore the price to $700. He thinks this is a two-step move.
Prime setting signal failure
Sir Chartist noted that the MSTR’s decline was below its 9-day exponential moving average and 20-day simple moving average. These lines are now fusing in a slanted pattern. When this happens, short-term momentum usually disappears quickly. He noted that the April trend – green candles keep pushing stocks to higher stocks, which puts the weight on the sales.
Let’s break this chart $ MSTR.
At the end of this topic, I will comment on today!
As a trader and a charterist, understanding and researching charts is the key to success.
Let’s take a look 👇
Thread 🧵 pic.twitter.com/gqxg9yrx2d
— Mr. Chartist (@ChartBreakout) May 24, 2025
Volume trends may mark the bottom
He was watching the panic-driven sale priced at $350. The peak volume of the red day means the seller is in control. But a sharp drop followed by lower sales, with a larger green bar that could mark the end of the decline. According to the report, once the purchases clearly exceed the sales, he will only browse the bullish.
Source: NASDAQ
Equity salary increase and Bitcoin purchase plan
The strategy (formerly Microstrategy) plans to raise $2.1 billion through stock sales. This money will go directly to more bitcoins. On the one hand, more BTC can raise the stock price later. On the other hand, fresh stocks may weigh MSTR as the transaction is in progress. Sir Chartist said the dilution effect was part of his expectation of the initial slide.
Past patterns suggest a rally
He reminded investors to break through earlier lateral channels. There was almost no callback in this move. Based on this model, he believes that once the stock has reached a low point, a repeat gathering can be a repeat gathering. His point of view: History does not repeat, but it often rhymes.
Warning Views Increase Weight
Crypto analyst Ali Martinez is also in trouble. He saw the TD sequential sell signal on the weekly chart of MSTR, which usually lowers the decline. The strategy’s recent Bitcoin purchase (7,390 BTC priced at about $765 million) dropped to over $400 earlier this week. But even large purchases are not enough to stop bearish signals on the chart.
In short, Sir Chartist called for a quick shake of $350 before a larger rally. He tends to move averages, volume changes, past breakthroughs and Bitcoin’s pull.
Featured images from Livewire Markets, charts from TradingView
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