The first paragraph is an excerpt from our 10/10 Technology Note:

No "Coin" Flip Here:

  • Inside the software group in the Bitcoin arena, two names stand tall. PRICE action between the two is diverging. Of course, we are referring to MSTR and COIN. The former's daily chart below does show some wide and loose action but it is just 6% off its most recent 52-week highs, while COIN trades 41% off its annual peak, not a typo. The ratio chart here comparing the two demonstrates the superiority of MSTR with a surge in May, then a cup with handle breakout in August and it has acted well POST breakout too, just what you want to see if you are bullish MSTR (the divergence may be getting a bit extreme with RSI nearing a white-hot 90 number). Looking at the MONTHLY chart of MSTR one can see the firm action following the cup base breakout, and so far in October it is breaking above a bull flag pivot of 170 which carries a measured move to 290 which could be achieved sometime in 2025. I think one can enter at 185 and use a CLOSING stop below 170. As for COIN, it is below its 50 and 200-day SMAs, and the latter is now starting to flatline suggesting the long-term trend is faltering.

Now we take a look at the updated situation of both MSTR and COIN.

  • The WEEKLY MSTR chart shows why I have an affinity for round-number theory. A double bottom at par from the weeks ending 5/3 and 8/9 and the rejection at the precise 200 figure from the week ending 3/29. This breakout carries a measured move to the 300. Last week jumped more than 20%, compared to COIN advancing just 3%.

  • There is still more than half the month of October left but this fledging bull flag breakout on the MSTR MONTHLY is looking very impressive. And adding on to that is how it is consolidating a prior cup base breakout 3 years in duration.

  • If one wanted to do the barbell approach I would wait until the COIN WEEKLY chart CLOSED above 190 to set up the potential add-on double bottom base pivot of 272.65. Notice on the WEEKLY ratio chart compared to MSTR at the bottom it has underperformed its rival since the start of 2024.

Good luck.

 

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The first paragraph is an excerpt from our 10/10 Technology Note:

No "Coin" Flip Here:

  • Inside the software group in the Bitcoin arena, two names stand tall. PRICE action between the two is diverging. Of course, we are referring to MSTR and COIN. The former's daily chart below does show some wide and loose action but it is just 6% off its most recent 52-week highs, while COIN trades 41% off its annual peak, not a typo. The ratio chart here comparing the two demonstrates the superiority of MSTR with a surge in May, then a cup with handle breakout in August and it has acted well POST breakout too, just what you want to see if you are bullish MSTR (the divergence may be getting a bit extreme with RSI nearing a white-hot 90 number). Looking at the MONTHLY chart of MSTR one can see the firm action following the cup base breakout, and so far in October it is breaking above a bull flag pivot of 170 which carries a measured move to 290 which could be achieved sometime in 2025. I think one can enter at 185 and use a CLOSING stop below 170. As for COIN, it is below its 50 and 200-day SMAs, and the latter is now starting to flatline suggesting the long-term trend is faltering.

Now we take a look at the updated situation of both MSTR and COIN.

  • The WEEKLY MSTR chart shows why I have an affinity for round-number theory. A double bottom at par from the weeks ending 5/3 and 8/9 and the rejection at the precise 200 figure from the week ending 3/29. This breakout carries a measured move to the 300. Last week jumped more than 20%, compared to COIN advancing just 3%.

  • There is still more than half the month of October left but this fledging bull flag breakout on the MSTR MONTHLY is looking very impressive. And adding on to that is how it is consolidating a prior cup base breakout 3 years in duration.

  • If one wanted to do the barbell approach I would wait until the COIN WEEKLY chart CLOSED above 190 to set up the potential add-on double bottom base pivot of 272.65. Notice on the WEEKLY ratio chart compared to MSTR at the bottom it has underperformed its rival since the start of 2024.

Good luck.