Strategy (MSTR) stock has traded within a narrow range over the past few days as Bitcoin’s rally has lost momentum. The stock was trading at $142.70, down from its September high of $170. However, this period of consolidation could be the calm before the storm, especially after JPMorgan issued a bold prediction about Bitcoin’s future price trajectory.
JPMorgan expects Bitcoin to beat stocks
Bitcoin has underperformed stocks this year. After soaring to $126,200, it has dropped by over 30% to where it is today. In contrast, the stock market has soared, with the S&P 500 Index hovering near its highest level on record, helped by artificial intelligence and energy sectors.
Now, however, JPMorgan analysts believe that Bitcoin will outperform stocks in the long term. The bank also believes that the coin will beat bonds and gold over time. It sees Bitcoin achieving an annual return of about 10%.
Other top analysts have maintained a bullish outlook for Bitcoin. Michael Saylor, Strategy’s founder, believes that Bitcoin has more upside to go over time, which explains why he has continued the buying spree.
Vivek Ramaswamy is also bullish on Bitcoin as evidenced by the ongoing accumulation by Strive. Also, Tom Lee sees Bitcoin continuing to outperform over time.
Blackrock, which runs the biggest Bitcoin ETF, believes that Bitcoin is a good hedge against risk, especially as US government debt continues to rise. It crossed the key milestone of $40 trillion and has already jumped to $40.2 trillion so far.
Strategy will be the biggest beneficiary if these Bitcoin forecasts come true, since it is the biggest holder. It bought 267 coins last week, bringing its total holdings to 848,517 coins, which are currently valued at $70.2 billion.
Meanwhile, there are signs that American investors are rotating back into Bitcoin. On Monday alone, they purchased more than $550 million worth of Bitcoin ETFs, reducing the cumulative net outflow to just $90 million. If these inflows continue for a few more days, Bitcoin ETFs are likely to record a fourth consecutive month of net inflows.
Bitcoin price has more upside to go
The daily chart suggests that Bitcoin has more upside to go in the near term. It has formed a falling wedge pattern, which is characterized by two descending and converging trendlines. The two lines often leads to a bullish breakout, especially when they are nearing the convergence.
Bitcoin has also remained above the Supertrend indicator and the 100-day moving average. Therefore, a rebound may push it to the important resistance level of $87,254. A surge above that level will point to more gains, possibly to $90,000, followed by $100,000. A jump to $100,000 would push the valuation of its Bitcoin holdings to nearly $85 billion.
MSTR stock forecast
The daily chart shows that MSTR stock has pulled back in the past few days, moving from a high of $170 to $142. This retreat, however, is losing momentum, as evidenced by the Average Directional Index (ADX), which has dropped from 40 to 24.
Strategy has remained above the ascending trendline that links the lowest levels since August. Therefore, the stock will likely rebound, initially to $170, followed by $200.