MicroStrategy $MSTR Risks Mount if BTC Slips: Michael Saylor Eyes Trillionaire Tag

MicroStrategy, the largest corporate holder of Bitcoin (BTC), has seen a significant drop in its share price. MSTR has fallen 46% in the last six weeks

Largest corporate holder of Bitcoin, MicroStrategy (NASDAQ:MSTR), has seen its share price take a significant hit recently. MSTR is down 46% in the last six weeks, including an 8% crash on Monday, closing the year at $302.

This performance has sparked議論 among traders, with some questioning the sustainability of MicroStrategy’s Bitcoin strategy. One trader, known as “The Maverick of Wall Street,” has even gone so far as to label MicroStrategy’s strategy a “Ponzi scheme.”

According to Maverick, the company is diluting its shares in order to prop up the price of Bitcoin. MicroStrategy has already raised $6 billion in convertible bonds to purchase more BTC, and the company plans to add another $18 billion soon.

However, this strategy may be reaching its limit. Further diluting shares could harm the company, as “the requirement for an upside move in Bitcoin keeps going higher to compensate for diluting the shares.”

Also Read: MicroStrategy Risks Mount if BTC Slips: Michael Saylor Eyes Trillionaire Tag

Meanwhile, Bitcoin itself has been on a downtrend since reaching an all-time high of $108,000. At the time of writing, Bitcoin trades at $92,509.85, down 2.04% in the last seven days and 4.09% in the past month. However, BTC is still up 118.92% from last year.

Bitcoin Weekly Analysis

The weekly chart shows a Relative Strength Index (RSI) of 63.99 for Bitcoin. This suggests that bulls currently control the price action. However, the RSI trend hints at a potential long-term correction if bulls don’t step up.

The MACD indicator may also soon turn bearish. The MACD line (blue) is above the signal line (red), but they are converging. This could signal a bearish divergence in the near future.

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