MicroStrategy (MSTR) Stock Price Target $500 in Sight as Bitcoin (BTC) Stages Decisive Breakout above $100,000

Following Trump's re-election, MicroStrategy has promptly bought BTC worth $6B in two tranches of purchases in November.

Following Trump’s re-election, MicroStrategy (NASDAQ:MSTR) has quickly bought $6 billion worth of BTC in two tranches of purchases this November.

First announced on Monday, November 11, Michael Saylor announced the first purchase of 27,200 BTC for $2.03 billion. Later on November 18, another 51,780 BTC were purchased for $4 billion.

This brings their total current holdings to 321,300 BTC. At press time, MicroStrategy’s total BTC stash is now worth $34.4 billion, held at 96% unrealized profit.

In reaction to the bullish events surrounding Bitcoin’s price action since Trump’s re-election, MSTR stock price rose 250% in 30-days to reach new all-time highs above $400.

Interestingly, with the company sitting on 96% unrealized BTC gains, the MSTR price outperformed BTC by five-fold in November. This rare correlation dynamic is likely to drive strategic investors to re-direct capital toward MSTR.

MSTR Technical Analysis: $500 rally in sight

If BTC stages a decisive breakout above the $100,000 level, MSTR is likely to advance further toward the $500 territories in the weeks ahead.

Looking ahead, it is crucial to note that MicroStrategy announced a plan to acquire $42 billion worth of BTC over the next 3-years.

Having raised another $1 billion in debt notes issued last week, the firm is expected to announce further BTC purchases in the coming weeks, a move that would not only drive up BTC price, but also indirectly drive up its MSTR stock value if the $100,000 resistance caves.

Key Resistance Levels:

$450: This level marks the immediate resistance, where profit-taking has emerged during recent sessions.

$500: A psychological and technical barrier that aligns with the upper Bollinger Band and Fibonacci extensions from the recent rally.

Key Support Levels: