Stacks (STX) and Microstrategy (MSTR) are excellent bitcoin (BTC) leverage plays

Stacks (STX) and Microstrategy (MSTR) are excellent bitcoin (BTC) leverage plays

Out of the traditional, as well as the crypto markets come a stock (MSTR) and a cryptocurrency (STX) that could outperform bitcoin across the rest of this bull market. 

Both $STX and $MSTR could outperform $BTC

Stacks (STX) and Microstrategy (MSTR) are certainly odd bedfellows. One is a cryptocurrency that gives access to a layer 2 built on top of the secure bitcoin base layer, and the other is a multi-billion stock market company that just happens to have Michael Saylor as its executive chairman.

However, they both have the potential to outperform $BTC as long as the king of the cryptocurrencies is in an uptrend. The thesis is that if $BTC goes up, both $STX and $MSTR should go up further.

$MSTR entering buy zone?

Source: Coingecko/TradingView

Against the US dollar, $MSTR has made a 43% correction so far. If the price reaches the support at $1,078, that would be a 46% correction, which is a pretty good correction to make in a bull market.

Source: Coingecko/TradingView

Against $BTC itself, it can be seen on the weekly chart above that $MSTR has reached a very strong level of support. The uptrend against $BTC has been in force since May 2022, and the present correction could start reversing back in favour of $MSTR from this point.

$STX reached nearly 400% gains against $BTC

Source: Coingecko/TradingView

As for the world of cryptocurrencies, and in this case $STX, a similar picture can be seen. The price against USD has corrected all the way to support at $2.31, and has even wicked down to the even stronger support at $2.06, which is surprisingly the same 46% correction that $MSTR could make.

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Source: Coingecko/TradingView

As can be seen in the STX/BTC weekly chart above, $STX has been in an uptrend against $BTC since early March. Disregarding the heavy corrections, $STX reached nearly 400% gains over $BTC. Now the price has corrected back to touch and confirm the 0.618 fibonacci level. This is a very bullish sign. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice. 

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