Weekly Market Decoding: Strategy shares show bullish divergence, Bitcoin rebounds near the 60,000 mark

Bitcoin asset management and business intelligence software company, Strategy ( $Strategy (MSTR.US)$) shares have shown signs of a bottoming-out rebound after falling to an 18-month low. As the company holds approximately 3% of the world's Bitcoin, its share valuation is closely positively correlated with Bitcoin’s price movements. The recent plunge in Bitcoin triggered further declines in its stock price, which has dropped 60% year-over-year, echoing Bitcoin's 29% decline. After Bitcoin fell to the $60,000 level last week, it rebounded strongly on increased trading volume, currently trading near $69,000. Accordingly, $Strategy (MSTR.US)$ the stock rebounded elastically after falling to $104 last week, closing at $133.88 on Friday, representing a 29% increase.

$Strategy (MSTR.US)$ Technical Analysis - Bullish Divergence Emerges, Bottom Volume Surges

1. In the daily chart, a clear bullish divergence has emerged between the price and the MACD indicator, meaning the current low is lower than the previous low, while the current low of the moving average in the MACD is higher than the previous low.

2. Following the release of the Q4 earnings report on February 5, the company’s stock plummeted by 17%, but rebounded on heavy volume at the bottom, signaling that all negative factors have been priced in. Alongside Bitcoin’s recovery, the company’s stock may continue to consolidate its bottom.

3. Recent resistance levels are concentrated near the 20-day moving average. If broken, there is potential for a return to the upper Bollinger Band.

Key Technical Points: 1. Technical Divergence (price and indicators show reverse signals) 2. Volume (volume surges at the bottom or top indicating trend reversal) 3. Moving Averages (using moving averages to determine resistance and support levels)

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