A bundle technical analysis pattern, which contrasts with that of Bitcoin (BTC) that warned about a recent examay of the market, is apparently emerging in the Microstrategy pricing table (MSTR) of the head of Bitcoin (MSTR).
The microsthegy pattern, a double background, includes two consecutive channels at approximately the same price, which is said to reflect the exhaustion of the downward trend, and a line of trend (a so -called neckline) drawn through the high point between them. A movement beyond the trend line confirms the rupture, or the change in bullish tendency to Bullish.
That is especially true when the pattern takes place after a remarkable slide, as in the case of Mstr, and the gap between the channels and the high is at least 10%, according to the theory of technical analysis. In the case of Mstr, it is more than 35%.
The table shows a double fund in MSTR to around $ 230 since the end of February with the resistance of the neckline identified in early recovery at $ 320.94.
A price movement through that resistance would confirm the double background rupture and indicate a renewed bull race. Technical analysts generally add the gap between the channels and the neckline to the point of rupture to derive the potential upward movement, which, in this case, means a rally to $ 410.
The price of the shares has also broken the line of bearish trend, characterizing the collapse from the maximum of November of $ 543.
The double evolving background in the MSTR pricing table seems like an mirror image of the double top of BTC. That pattern at the beginning of this year that warned about a price that is sold at $ 75,000.
BTC double top top breakdown occurred on February 24, with prices that fell below $ 91,000, suggested by a reversal of bearish trends. The decline accumulated rhythm in the following days, with slid prices up to $ 76,800 last week. The technological index of Wall Street, Nasdaq, saw a similar collapse earlier this month.
Double backgrounds and double tops have low failure rates, according to CMT books, which means that outbreaks and breakdowns generally lead to extended price manifestations or liquidations.
Microstrategy is the owner of Bitcoin publicly larger in the world, with a tire of coins of 499,096 BTC ($ 41.5 billion).
