Shares of Strategy (trading under the ticker MSTR) have begun to stabilize after a brutal correction earlier in the year. The stock is now showing multiple bullish signals as investors step back in, encouraged by signs of a recovery in Bitcoin.
After plunging more than 65% from its 2025 highs, MSTR was trading around $176 on January 15, up roughly 18% from its yearly low. This rebound, combined with improving technical indicators, suggests the stock could be setting up for a much larger move.
MSTR Technical Setup Signals Strength
On the daily chart, MSTR appears to have bottomed near $152 earlier this month before bouncing higher. This price action formed a clear double-bottom pattern, a classic bullish reversal structure that often appears near market lows.
Momentum indicators are also turning supportive. The Percentage Price Oscillator lines are rising and approaching the zero level, while the histogram has already flipped positive. At the same time, the Relative Strength Index has recovered sharply, climbing from deeply oversold territory near 23 to around 52, signaling improving buying pressure.
If this momentum continues, bulls are likely to target the 23.6% Fibonacci retracement level near $222, which would represent roughly 30% upside from current prices. The bullish outlook remains intact as long as the stock stays above the $152 double-bottom level. A break below that support, however, would weaken the setup and could open the door to a deeper decline toward $100.
Bitcoin’s Chart Adds Fuel to the Bullish Case
Strategy’s fortunes are closely tied to Bitcoin’s performance. The company is the world’s largest Bitcoin holder, controlling approximately 687,410 BTC currently valued at more than $65 billion. As a result, any sustained rebound in Bitcoin tends to translate directly into stronger demand for MSTR shares.
On the weekly chart, Bitcoin remains in a long-term uptrend that began in late 2022, when prices bottomed near $15,370. The asset continues to trade within an ascending channel and is currently hovering near the lower boundary, a level that has historically sparked rebounds.
Bitcoin is also holding above its 100-week Exponential Moving Average, while its RSI is approaching the neutral 50 level. If BTC regains momentum, a move toward $100,000 becomes increasingly plausible. A breakout above that psychological level could set the stage for a retest of its all-time high near $126,300.
If Bitcoin were to revisit those highs, the value of Strategy’s Bitcoin holdings would jump from roughly $66 billion to more than $86 billion, significantly strengthening the company’s balance sheet and investor appeal.
Additional Catalysts Supporting MSTR
Beyond Bitcoin price action, Strategy has other factors working in its favor. MSCI recently decided not to remove the stock from its indices, avoiding forced selling by index-tracking funds.
Valuation metrics are also becoming more attractive. Strategy is currently trading at a market net asset value of around 0.96, suggesting the stock is priced below the value of its underlying assets. Meanwhile, short interest has climbed to about 10%, increasing the potential for a short squeeze if bullish momentum accelerates.
Taken together, improving technicals, a constructive Bitcoin setup, and supportive fundamentals suggest that MSTR may be entering a phase where a larger breakout becomes increasingly likely if market conditions cooperate.
