MicroStrategy Inc. update
#242 An updated analysis of MicroStrategy (Nasdaq: MSTR)
Introduction
In July 2024, I conducted a comprehensive review of MicroStrategy Inc. (Nasdaq: MSTR), a company closely linked to its Bitcoin investments. For many investors, MSTR stock acts as a proxy for Bitcoin. Recently, MicroStrategy and Bitcoin reached new record highs, in November 2024 and January 2025, respectively. However, by the end of January 20th, both MicroStrategy and Bitcoin have entered a period of decline. It's time for a new update.
In my July 2024 forecast for MicroStrategy, I mentioned the importance of “the two-year cycle in Mars and the Mars Declination cycle (that) may signal a significant change in trend.” As you can see in the updated chart below, MicroStrategy was following this cycle almost to the day.
MicroStrategy's stock price appears to be returning to its main trading channel created by the 1x1 timing lines (black). However, the stock may find earlier support at the 2x1 and the mid-channel 1x1 (black dashed timing line). Continuing the downtrend below the 1x1 (black dashed) timing line could drive the stock price toward the lower 1x1 (black) timing line.
Last year, MicroStrategy's stock chart showed a remarkable 96% correlation with the price of Bitcoin; however, measured over the last 12 months, it has diminished to 85%. It’s crucial to understand that analogies or correlations may stop working when fundamental factors or planetary cycles change. Remember, correlation is not causation and a sound investment strategy should be based on a variety of factors.
In this updated post, I will briefly overview MicroStrategy’s fundamentals and explore the planetary cycles of the Sun, Venus, Mars, and Uranus, along with the dominant time cycles for our premium subscribers, for an updated forecast.