The daily timeframe chart shows that the BitMine stock price has been in a strong downward trend in the past few months. It plunged from a record high of $160 to the current $20.

On the positive side, the coin has formed a falling wedge pattern, which consists of two descending and converging trendlines. 

This wedge is nearing its confluence, which could lead to a rebound soon. Also, the Relative Strength Index has moved from the oversold level of 30 to the current 32.

Therefore, the stock will likely have a strong bullish breakout in the coming days, potentially to the key resistance level at $35, its highest level in January this year.

On the other hand, a move below the lower side of the wedge will point to more downside in the near term. 

Strategy continues Bitcoin accumulation

In a statement, Saylor said that his company bought 1,142 Bitcoin btc0.41%Bitcoin at the average price of $78,815. This purchase brought its total Bitcoin holdings to 714,644 valued at over $49 billion.

Data compiled by Bitcoin Treasuries shows that its average cost per Bitcoin stood at over $76,052. With the Bitcoin price trading at $69,000, it has suffered a nearly 10% loss. More data shows that it has suffered a $5 billion in unrealized losses. 

In a report last week, the company said that its operating loss rose to over $17.4 billion as the Bitcoin price plunged. Its net loss soared to $12.4 billion, a trend that may persist if BTC remains in a downtrend. 

Worse, Strategy continues to dilute its shareholders by using its common stock to buy Bitcoin. Data show it has more than $7.9 billion in authorized shares to buy. 

It also has over $20 billion in available STRK preferred shares. As a result, the total outstanding shares jumped to over 300 million, up from 77 million in 2021.

Wall Street analysts are optimistic of MSTR stock

Still, Wall Street analysts are starting to turn bullish on the Strategy stock, citing the potential BTC rebound. Cantor Fitzgerald analyst maintained an overweight rating with a target of $192.

BTIG analysts have a target of $250, while Canaccord Genuity, Mizuho, and Truist Financial see it soaring to $185, $403, and $268. Data compiled by MarketBeat shows that the consensus target among Wall Street analysts is $347, up by 176% from the current level.

MSTR’s stock recovery will depend on Bitcoin’s rebound. A strong Bitcoin rally will lead to a higher stock price, as it happened on Friday. Strategy jumped by nearly 30% as Bitcoin moved from $60,000 to over $70,000.