MicroCloud Hologram, a Chinese Bitcoin treasury company, has moved sideways since May despite the recent crypto market rally.
Summary
- HOLO stock price has remained in a tight range this year, even as Bitcoin jumped.
- MicroCloud Hologram is one of the most shorted Bitcoin treasury companies.
- Wyckoff Theory points to a short-squeeze in the coming months.
HOLO’s Wild Ride: From $4.35 to Parabola?
MicroCloud (HOLO), once a meme stock darling, trades at a sobering $4.35. Crushed 98% from its peak, is a phoenix-from-the-ashes rally possible? Buckle up as we explore the forces that could send HOLO on a parabolic surge this year.
HOLO stock is cheap
MicroCloud’s stock price could be primed for a rocket launch. Why? Because it’s bargain-basement priced despite holding a treasure chest of Bitcoin. The company’s market cap sits at a measly $63 million, while they’re sitting on 2,353 BTC – a digital gold mine currently valued at over $272 million. That’s a jaw-dropping discrepancy that savvy investors won’t ignore for long.
Notably, MicroCloud carries limited debt. The most recent annual report shows total liabilities of just $4.4 million.
BitcoinTreasuries data reveals a stark contrast: the company’s NAV multiple languishes at a mere 0.234. Consider Strategy’s robust 1.4 multiple, or Metaplanet’s impressive 2.5 – the company’s figure pales in comparison.
MicroCloud Hologram has a high short interest
MicroCloud Hologram faces a unique challenge: Wall Street is swarming with bears. A staggering 35.50% of the company’s shares are currently held in short positions. That’s a shadow cast far darker than seen on most public firms, and even eclipses other Bitcoin-adjacent companies. Think of MicroStrategy (MSTR), where only around 10% of shares are shorted, or even MARA Holdings, sitting at a still-significant 35%. The question is: will MicroCloud Hologram defy the doubters, or will the bears feast?
Historically, highly shorted stocks have been prone to short squeezes. Notable examples include GameStop and AMC.
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Bitcoin price could be on the verge of a bullish breakout
BTC price chart | Source: crypto.news
Bitcoin bulls, brace yourselves! Key technical indicators are flashing green, hinting at a potential breakout. The digital king has found a fortress of support, bouncing resiliently off the combined might of the 50-day and 100-day EMAs. Is this the calm before the storm, or a launchpad to new heights? Keep a close watch!
Bitcoin’s price action is screaming bullish. Having shattered its former all-time high of $112,000, Bitcoin didn’t just break through; it danced back for a victory lap, confirming it as solid support. As if that weren’t enough, a bullish flag pattern is waving, signaling a potential surge.
Therefore, expect a potential surge towards the $125,000 mark a key psychological barrier. Should Bitcoin breach this level, companies with substantial Bitcoin treasuries stand to gain significantly, witnessing a notable upswing in the value of their assets.
Wyckoff Theory points to a HOLO share price surge
HOLO stock chart | Source: TradingView
HOLO’s daily chart whispers a tale of accumulation, a Wyckoffian lullaby sung in sideways movements and hushed volumes. The stock price is hibernating, gathering strength for its next surge.
Once the foundation is set, brace yourself for the markup frenzy, where demand explodes and leaves supply gasping for air. Should history repeat itself, prepare for HOLO to potentially rocket toward a formidable barrier at $9.90, revisiting heights unseen since June.
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