Does the strategy form a "baby abandoned" pattern: a bullish reversal signal?

Source: Criptonoticias Original Title: Strategy forms a “baby abandoned” pattern Original Link: https://www.criptonoticias.com/mercados/strategy-patron-bebe-abandonado/

Technical Pattern Analysis

Strategy (MSTR) shares, the largest corporate holder of bitcoin (BTC), registered one of the most infrequent trend reversal patterns in technical analysis this week: the so-called “baby abandoned” pattern.

This is a classic signal of a possible bullish reversal. This suggests that MSTR may have hit a bottom after weeks of selling pressure.

The pattern forms when a strong gap down is followed by a small isolated candle, and then an upward gap that leaves that candle “abandoned.” Confirmation occurs when the price moves back above the previous range, which MSTR achieved on December 3.

The break of the “baby abandoned” pattern occurred after a period of intense fear in the market, coinciding with bitcoin’s fall from its all-time high of $126,000.

Market Context

MSTR’s behavior occurs as the company faces criticism over its business model, after the total value of its bitcoin reserves (mNAV) dropped below 1.00.

Despite the technical rebound, the sustainability of Strategy’s stock movement will largely depend on bitcoin’s recovery. This is because its price continues to react to macroeconomic factors and the reduction of global liquidity.

Future Perspective

If the reversal is confirmed, the pattern could mark the beginning of a multi-month bullish cycle. Although the stock remains exposed to the volatility typical of the digital asset market.

The “baby abandoned” pattern is rare, and if it materializes, it would anticipate a prolonged rise for Strategy’s shares.