Market watcher Sir Chartist predicts a potential sharp drop in Strategy's stock (MSTR) to as low as $350, followed by a rebound to $700 in a two-step move.
Sir Chartist highlights that MSTR has fallen below key moving averages, indicating a bearish trend, with short-term momentum fading due to increased selling.
He anticipates a bottom near $350 driven by panic selling, with a subsequent rebound signaled by lower selling volume and larger green bars.
Strategy's plans to raise $2.1 billion through a stock sale for more Bitcoin could potentially impact MSTR's price, with historical patterns suggesting a rally after a sharp pullback.