The chart above is a monthly candlestick chart on which the Coppock indicator is falling. The purple buy signals are the ones that matter. The red smileys mark when Coppock turns down and are grounds for caution rather than outright sell signals. Since Coppock turned down in January 2025 Microstrategy shares have been consolidating.
Forgetting Coppock for the moment, this consolidation looks bullish to me, and there are signs of a breakout higher with the latest green candlestick. Microstrategy’s business was reinvented in late 2020 as a Bitcoin investor, so the previous share price behaviour is irrelevant.
It is the weekly Coppock chart which tells a bullish story.
This idea of using weekly Coppock charts is a new one, so I am on a learning curve. There is a buy signal both from Coppock and from the moving averages on the chart. Being weekly, these can happen and reverse quickly, so the next thing is to look at Bitcoin. The blue smileys are the ones to watch here.
Surprise, surprise, the Bitcoin chart looks similar to the Microstrategy chart. This is the weekly Coppock (never considered by Edwin Coppock), and it is giving a clear buy signal.
The chart below offers a completely different perspective on Bitcoin. Instead of weekly candlesticks, each candlestick equals three months.
I have shown this chart before or something very like it. It appears bullish to me and even suggests that all the trading since 2014 could be the springboard for a massive advance. Something dramatic would have to happen to spark such an advance, but it could happen.
Every time Microstrategy goes in as a buyer, the price goes up. Imagine if China or Japan or some deep-pocketed country quietly stockpiled Bitcoin and then let the world know it was a serious buyer. Unlike gold, there is no extra supply beyond 21m coins; that’s it. If the value of all traded Bitcoin can reach $2 trillion why not $10 trillion.
It is probably an exaggeration to say Bitcoin is a powder keg waiting to explode, but that is not a crazy analogy.
Share Recommendations
Microstrategy. MSTR
Bitcoin BTCUSD
Strategy – Buy MSTR/ BTCUSD In Case The Bulls Are Right
Bitcoin is like a hedge against global instability, driven higher presently by dollar weakness. It is also a speculator’s dream. A massive breakout above $100,000, which may never happen, could trigger a flood of money into Bitcoin assets.
Bitcoin can stay in a trading range for ages, but it only needs to break higher once to send the bulls into a frenzy. And 10 years ago, who but a few crazies imagined that Bitcoin would reach $100,000
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