MicroStrategy Gains 8.9% as Bitcoin Correlation Hits 0.98, RSI Warns
MicroStrategy shares jumped 8.85% to close around $133 on Feb. 13, while the 7-day rolling correlation with Bitcoin surged to 0.98. Concurrent hidden bearish RSI divergence and volume signals suggest elevated correction risk if price fails to hold above $133.88.
1. Stock Price Rally and Bitcoin Correlation
On Feb. 13, MicroStrategy shares surged 8.85% to close near $133 as the 7-day rolling correlation with Bitcoin climbed to 0.98, the highest level since early February.
2. Hidden Bearish RSI Divergence
RSI momentum shows a hidden bearish divergence as price forms lower highs while RSI peaks higher, a pattern that preceded a nearly 14% drop earlier and signals potential correction pressure.
3. Key Price Level and Correction Risk
A decisive move below the $133.88 level would keep the bearish setup intact, while a sustained break above could invalidate the divergence but weaken Bitcoin’s influence on stock performance.
4. Institutional vs Retail Flows
Despite the price rally, Chaikin Money Flow has been trending above zero since late November, indicating institutional buying is counterbalancing retail selling and may cushion against abrupt pullbacks.