Say what you will about enigmatic Bitcoin (BTC), but the cryptocurrency is up 55.7% in 2023. Crypto software stock MicroStrategy (MSTR) is faring even better, with a 148% year-to-date lead. However, as part of the broad market September swoon, MSTR is off by 1.4% this month. The good news is that if past is precedent, this pullback could have bullish implications for the Bitcoin-adjacent stock.
MicroStrategy stock in the last few weeks has fallen within one standard deviation of its 100-day moving average. According to Schaeffer’s Senior Quantitative Analyst Rocky White, there have been five other times in the last three years MSTR came within one standard deviation of its 100-day trendline after a lengthy stretch above it — defined for this study as 80% of the time over the past two months, and eight of the last 10 trading days.
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