MicroStrategy (MSTR) Stock Price Surged Over 60% in November

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According to the MicroStrategy Incorporated (MSTR) stock chart:
→ At the start of November, the stock price was around $244;
→ Last Friday, it closed just below $395;
→ This represents a more than 60% increase in MSTR’s price over the month, making it one of the top performers on the U.S. stock market;
→ At its peak on 21 November, the stock traded above $520, reflecting a 115% surge in just three weeks.

Two key drivers supported the bullish sentiment:

  1. Bitcoin holdings by MicroStrategy.
    According to Benzinga, the company owns nearly 2% of the global Bitcoin supply, a figure projected to rise to 4% by 2023. The current surge in BTC/USD towards $100,000 has significantly increased MicroStrategy's value. Co-founder Michael Saylor stated that the company earns an average of $500 million daily from its Bitcoin investments.
  2. Market capitalisation milestones.
    In November, MicroStrategy's market capitalisation exceeded $100 billion for the first time. On this note, Seeking Alpha highlighted the potential for MicroStrategy's inclusion in the Nasdaq 100 index. This could prompt large funds tracking the index to purchase MSTR shares for their portfolios.

Technical analysis of MSTR’s price chart indicates that since mid-September, price fluctuations have formed an ascending channel (marked in blue).

The decline from point A to B appears overly steep to be classified as a strict correction within the uptrend, which followed the achievement of extreme overbought conditions (visible on the RSI indicator).

While the stock rebounded upwards upon reaching the lower boundary of the channel (point B), the question remains whether the bulls can replicate November’s extraordinary success.

Buyers should exercise caution based on bearish price action around psychological levels:
→ The price failed to hold above $500.
→ On 22 November, the $450 level acted as resistance.

Meanwhile, according to TipRanks:
→ All 8 surveyed analysts recommend buying MSTR stock.
→ The average price target for MSTR is $494 within the next 12 months.