Analysts predict a Bitcoin rally if MSTR rises, possibly pushing the coin to $75,000 soon. A healthy breakout on the daily chart backs this, with BTC likely to stay above $61,505 if bulls hold their ground.
The Bitcoin Therapist, an anonymous Bitcoin enthusiast on X platform, suggested that Bitcoin could reach hundreds of thousands of dollars. However, the account clarified that this prediction was tied to the price of MSTR, Microstrategy’s stock.
Bitcoin’s Influence on Microstrategy (MSTR) Stock and Holdings
The Bitcoin Therapist suggests that if Microstrategy’s stock (MSTR) reaches between $5,000 to $10,000 per share by the end of 2024, Bitcoin’s price could also surge. This projection hinges on the correlation between MSTR’s performance and Bitcoin’s price movement.
Feels like $MSTR could potentially hit $5,000-10,000/share by EOY.
Obviously that would require a #Bitcoin price in the hundreds of thousands.
The biggest mistake anyone can make is to doubt Michael Saylor. He’s an absolute genius.
He is playing Wall Street like a fiddle.
— The ₿itcoin Therapist (@TheBTCTherapist) March 10, 2024
Microstrategy, under the leadership of Chairman Michael Saylor, has observed a strong correlation between its stock and Bitcoin since adding the cryptocurrency to its balance sheet.
At present, MSTR’s price stands at $1,425, marking a significant 108.70% increase Year-To-Date (YTD). Meanwhile, Bitcoin is priced at $69,445, reflecting a 57.24% hike over the same period.
Beyond the correlation between Bitcoin and MSTR, Microstrategy has seen remarkable profitability from its Bitcoin holdings. According to Arkham Intelligence data, the value of these holdings has surged by 116% since the initial purchase, leading to a market value exceeding $13 billion and profits exceeding $5.50 billion.
Microstrategy Bitcoin Balance (Source: Arkham Intelligence)
Bitcoin’s Price Surge and Potential Outlook
New All-Time High: On March 8, Bitcoin surged above $70,000, marking a new all-time high. However, some traders opted to book profits shortly after this milestone, leading to a temporary red candlestick presence in the market.
Resilient Bullish Momentum: Despite the brief downturn, Bitcoin quickly resumed its upward trajectory. Coin Edition observed that there were no significant obstacles preventing the price from retesting $70,000.
Potential for Further Upside: Bitcoin is expected to surpass $75,000, provided that bulls continue to resist bearish pressure. The upward trend is supported by indicators such as the Exponential Moving Average (EMA), with the 20 EMA crossing over the 50 EMA, reinforcing the bullish outlook.
Potential Correction Risk: However, traders should remain vigilant. If Bitcoin’s price falls below the 20 EMA, a correction could occur, potentially leading to a decline to $56,799, representing a 19% drop.
Analyst Predictions: Analyst Timothy Peterson also suggests the possibility of Bitcoin reaching six figures, projecting a timeline for Bitcoin to hit $100,000 by October 2024.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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