MicroStrategy’s Bitcoin Correlation Hits 0.98 as RSI Warns of Correction
MicroStrategy shares jumped 8.85% to $133 on February 13, marking a 5% weekly gain despite Bitcoin dipping 2.2%. The 7-day rolling correlation with Bitcoin hit 0.98 as RSI’s hidden bearish divergence warns of a potential price correction below $133.88.
1. February 13 Price Surge
MicroStrategy stock closed at $133 on February 13, rallying 8.85% for the day and gaining nearly 5% over the week while Bitcoin slipped about 2.2%, creating a temporary divergence between the two assets.
2. Near-Perfect Bitcoin Correlation
The seven-day rolling correlation between the stock and Bitcoin has climbed to 0.98, matching the highest level since early February and indicating that future share moves may mirror Bitcoin’s fluctuations.
3. Bearish RSI Divergence Signals Risk
A hidden bearish divergence in the Relative Strength Index—where price made a lower high despite an RSI higher high—echoes a November–February pattern that preceded a 14% stock drop and flags a potential correction.
4. Key $133.88 Level and Institutional Flows
If shares cannot sustain above $133.88, correction pressure could intensify; however, the Chaikin Money Flow has remained positive since late November, signaling ongoing institutional inflows despite bearish indicators.