MicroStrategy Inc. (NASDAQ:MSTR), a stock that is considered an alternative to Bitcoin (CRYPTO:BTC) received a bullish signal from the moving average (MA) technical indicators.

What happened: According to financial market analytics platform TradingView, almost all simple and exponential MAs gave a “buy” rating on the stock, culminating in a net “strong buy” signal.

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Moving averages smooth price data by creating a constantly updated average price. When price is above a moving average, the trend is usually up. If the price is below a moving average, the trend is bearish.

On the contrary: momentum indicators paint a different picture. The Moving Average Convergence Divergence (MACD) indicator, which compares a stock's short-term price to its long-term price, was showing a “sell” signal as of this writing.

Similarly, the Relative Strength Index (RSI), used to detect overbought or oversold conditions, indicated a “neutral” reading for the stock.

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MicroStrategy's options trading market analysis also showed bearish sentiment.

According to market analysis platform Fintel, the stock had a put/call ratio of 1.2 at the time of this writing, suggesting that bearish bets outnumbered bullish ones.

Why it matters: MicroStrategy adopted Bitcoin as a primary reserve asset in August 2020, becoming the first publicly traded company to pursue this strategy.

Since then, it has risen 1,989%, outperforming some of Wall Street's biggest names, including the darling of artificial intelligence Nvidia Corp. The company's shares have outperformed the famous “Mag 7” group of companies in 2024, recording a year-to-date increase of 225%.

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According to its recently released third quarter earnings report, MicroStrategy holds approximately 252,220 BTCs worth $17.37 billion on its balance sheet.

The company announced that it would raise $42 billion through equity and debt financing over the next three years to purchase more Bitcoin.

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