Hello Traders, in today’s blog we’ll be focusing on MSTR, one of the world’s largest corporate holders of Bitcoin, and examining the corrective cycle that has been unfolding for nearly two years

Who is MicroStrategy ?

MicroStrategy (officially rebranded to Strategy Inc.) is an American public company traded on the Nasdaq under the ticker symbol MSTR.

Founded in 1989 by Michael Saylor, Sanju Bansal, and Thomas Spahr, the company initially operated as an enterprise business intelligence (BI) and mobile software provider. Today, it functions with a dual operational strategy:

Bitcoin Treasury Operations: MicroStrategy is widely recognized as the world’s largest corporate holder of Bitcoin. Since 2020, under Executive Chairman Michael Saylor, the company adopted Bitcoin as its primary treasury reserve asset, leveraging debt and equity offerings to accumulate hundreds of thousands of bitcoins.

Enterprise Analytics Software: MicroStrategy continues to develop and market cloud-native, AI-powered business intelligence platforms used by global organizations to analyze data and drive decision-making.

A corrective phase (ZigZag) that has persisted for close to two years

Since the peak in late November 2024, MicroStrategy (MSTR) has been correcting lower in a classic 5-3-5 Zigzag structure to complete wave (II).

Wave a found its floor at the March 2025 lows, followed by a wave b bounce that capped out at the July 2025 highs. The stock has since turned lower in wave c, which already displays a clear 5-swing decline—signalling that the entire corrective cycle from the 2024 peak is approaching maturity.

Price action has now entered a high-frequency inflection area (Blue box) where buyers and sellers are colliding. A bullish turn is expected from this area, with the overall setup remaining valid as long as price holds above the key 13.75 invalidation level.

What is a ZigZag and what does it mean to you as a Trader?

A Zigzag structure in Elliott Wave Theory is a sharp three‑wave corrective pattern labelled A‑B‑C, with a distinct 5‑3‑5 subdivision. It represents a counter‑trend move and is one of the most common corrective formations.

Wave A consists of 5 sub-waves, forming the initial impulsive push up or down.

Sub-wave B unfolds in 3 distinct movements as a smaller counter-trend pull.

The final Wave C completes the structure with 5 sub-waves, typically matching or exceeding the length of Wave A.

Trading Insights

  • Zigzags often signal continuation after correction, making them useful for identifying re‑entry points in the direction of the larger trend.
  • Traders watch for Blue Box zones (high‑probability reversal areas) to align entries with the end of Wave C.
  • Recognizing zigzags helps avoid mistaking them for trend reversals—they are corrective pauses, not new dominant trends.

Understanding the Zigzag correction directly clarifies the corrective structure in the MSTR chart above.

Key Takeaway

MicroStrategy has transformed into a Bitcoin holding vehicle paired with its original analytics software business. Holding MSTR offers leveraged Bitcoin exposure to investors, while enterprises rely on its BI platforms for data-driven decisions.

Why choose EWF ?

At Elliottwave Forecast (EWF), we deliver consistent market updates through regular charts update. Our analysts update 1‑hour charts four times daily and 4‑hour charts once per day across all 78 instruments. We host five daily live sessions and a 24-hour chatroom, providing real-time market guidance and answering client questions.

You can start a 14‑day trial with us today here and cancel anytime by emailing support@elliottwave-forecast.com

Follow on X @NgcoboGen