Analyst: MicroStrategy's stock price shows technical divergence after BTC hits a new high, which may indicate that the positive cycle has been broken
ChainCatcher news, according to CoinDesk, analysts explain the recent stock price trends of MicroStrategy (MSTR) through Soros' Theory of Reflexivity. This theory posits that there is a two-way interaction between investor expectations and prices: optimistic investors drive prices up, and rising prices enable the company to finance at lower costs, further improving performance and pushing prices higher, creating a virtuous cycle. However, when this cycle is broken, price adjustments may exceed market expectations.The stock price of MicroStrategy (MSTR) has continued to decline after being included in the Nasdaq 100 index, once dropping to the $300 mark, down nearly 45% from its historical high of $543 at the end of November, and about 30% from the $430 announced on December 14 after the Nasdaq 100 inclusion. Analysts point out that several market signals suggest MSTR may have formed a short-term top, including: the company's stock price skyrocketing nearly 8 times this year, founder Michael Saylor frequently appearing and promoting the new "Bitcoin yield" indicator, and multiple companies beginning to emulate its Bitcoin reserve strategy.Despite the recent significant pullback, MSTR's long-term performance remains impressive. The stock is still up over 400% this year, with a cumulative increase of 20 times since it began implementing its Bitcoin reserve strategy in August 2020. Most analysts believe that MSTR has experienced similar magnitude pullbacks multiple times over the past three years, but ultimately ended with gains.