Bitcoin and other major cryptocurrencies are experiencing a resurgence, indicating that their recent upward movements may be sustainable. This positive momentum is also reflected in crypto-related equities, particularly bitcoin miners and treasury companies, which have shown technical improvements.
Strategy, the largest bitcoin treasury company globally, has rebounded significantly in the past month, supported by favorable long-term indicators like the monthly MACD, which suggests a potential end to its bearish cycle. Analysts believe that a long-term low could be confirmed if monthly stochastics rise above 20%, similar to trends observed earlier in 2023.
For long-term investors willing to endure short-term fluctuations, this may be an opportune moment to invest in MSTR. Short-term traders may also find MSTR appealing, as the intermediate-term trend has turned positive following support found near previous lows.
The weekly MACD is rising, and signals from the DeMARK Indicators® suggest further upward movement could occur in the coming weeks, targeting resistance levels between $222 and $232, partly defined by the 200-day moving average. Investors are advised to use the 50-day moving average as a stop-loss reference.
Bitcoin miners are also showing signs of recovery, as evidenced by the ETF-proxy WGMI, which has surpassed its January high of $52, indicating strong intermediate-term momentum. The long-term trend for WGMI remains positive, with price levels above the weekly cloud, suggesting potential upside to around $68.
Overall, improved sentiment in bitcoin is positively impacting crypto equities, making pullbacks in MSTR and other major bitcoin-related stocks potential buying opportunities as they are well-positioned for growth in Q2