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BitcoinSistemi 2025-03-18 13:28:08

Michael Saylor's ''Strategy'' Stock Prices Created a Double Bottom Formation! What Will Be the Impact on Bitcoin? Here Are the Details

The strategy (STR) may be on the verge of a bullish breakout as the price chart is forming a double bottom formation, which is a classic downtrend exhaustion and potential rally signal. Strategy's Double Bottom Formation Could Signal Potential Bull Run A double bottom formation occurs when an asset forms two consecutive bottoms at similar price levels and then breaks above a significant resistance level (the “neckline”). In Strategy’s case, the stock has bounced around $230 twice since late February, with the neckline resistance hitting $320.94 in early March. Technical analysts note that the gap between the lows and the neckline is above 35%, reinforcing the strength of the formation. If STR successfully breaks above $320.94, the expected upside target according to traditional charting techniques is $410. Moreover, STR broke out above the downtrend line that has been in place since the November high at $543, further supporting the bullish case. The strategy’s double bottom formation is in sharp contrast to the double top formation seen in Bitcoin (BTC) earlier this year, which was a signal that warned of a recent crypto sell-off. BTC’s double-top crash occurred on February 24, when prices fell below $91,000, confirming a downtrend reversal. The decline accelerated, with Bitcoin falling to $76,800 last week. The Nasdaq index, which is dominated by tech stocks, experienced a similar crash earlier this month. According to Chartered Market Technician (CMT) studies, double bottom and double top formations have low failure rates, meaning successful breakouts or crashes tend to trigger sustained price trends. As the largest publicly traded Bitcoin holder, Strategy’s stock is often seen as a proxy for BTC price movements. The company currently holds 499,096 BTC, worth around $41.5 billion at current market prices. If MSTR does break out of the double bottom, it could signal renewed bullish momentum not just for the stock but also for Bitcoin and the broader crypto market. *This is not investment advice. Continue Reading: Michael Saylor's ''Strategy'' Stock Prices Created a Double Bottom Formation! What Will Be the Impact on Bitcoin? Here Are the Details

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