MicroStrategy Stock Price Continues Bearish Trend Amidst Bitcoin Purchases

MicroStrategy has been making headlines in the cryptocurrency space with its aggressive Bitcoin purchases. However, despite this, the company's stock price has been experiencing a bearish trend.

The latest purchase of $40 million worth of Bitcoin on February 23 did not seem to stabilize the MicroStrategy stock price, which continued to fall and break down the bear-flag pattern that started on February 19. This weakness closely reflects Bitcoin's own behavior, and when Bitcoin pauses or weakens, MicroStrategy often falls faster because its valuation already assumes strong upside from its Bitcoin holdings.

The Chaikin Money Flow (CMF) indicator is now flashing a warning sign, indicating that institutional investors may not be accumulating MicroStrategy stock despite the company's Bitcoin buying. The CMF has flatlined, hugging the zero line, showing that institutional money is undecided at the moment. This disconnect weakens the bullish case and suggests confidence in the stock itself may be fading.