Michael Saylor's 'Strategy' Stock Prices Formed a Double Bottom Formation! What Will Be the Impact on Bitcoin? Here Are the Details

Strategy (STR), as the price chart formed a classic double bottom formation, indicating exhaustion of a downtrend and a potential rally signal, it may be on the verge of a bullish breakout.

The Double Bottom Formation of the Strategy May Indicate a Potential Bull Run

Double bottom formation occurs when an asset forms two consecutive lows at similar price levels and then breaks above a significant resistance level known as the 'neckline'.

In terms of the strategy, the stock has made two jumps around $230 since the end of February, and the neckline resistance reached $320.94 at the beginning of March.

Technical analysts point out that the gap between the bottoms and the neckline is over 35%, which reinforces the strength of the formation. If STR successfully rises above 320.94 dollars, the expected upward target according to traditional chart techniques is 410 dollars.

In addition, STR has risen above the downtrend line that has been continuing since the highest level of $543 in November, further supporting the uptrend.

The double bottom formation of the strategy presents a sharp contrast with the double top formation seen in Bitcoin at the beginning of the year, which was a warning signal about the recent crypto sales.

The double top collapse of BTC occurred on February 24, confirming that prices fell below $91,000 and the downward trend reversed. The decline accelerated and Bitcoin fell to as low as $76,800 last week. The Nasdaq index, dominated by technology stocks, also experienced a similar collapse earlier this month.

According to the Chartered Market Technician (CMT) study, double bottom and double top formations have low failure rates, meaning successful breakouts or breakdowns tend to trigger sustained price trends.

Shares of Strategy, which is the largest publicly traded owner of Bitcoin, are generally seen as an indicator of BTC price movements. The company currently holds approximately 499,096 BTC worth around 41.5 billion dollars at current market prices.

If MSTR's double bottom breakout occurs, this may indicate a renewed upward momentum not only for stocks, but also for Bitcoin and the broader crypto market.