Indicator Overview

The MSTR 200D MA Heatmap indicator measures Strategy’s share price deviation from its 200-day moving average (MA), expressed as a percentage. The 200-day MA serves as a critical long-term trend benchmark for MSTR, reflecting both its underlying Bitcoin holdings and the market’s perception of its corporate premium/discount. Weekly heatmap dots (coloured from deep blue through green, yellow, orange, and red) visualise the magnitude and direction of these deviations, providing an immediate, intuitive view of whether MSTR is trading at an extreme premium (overbought) or discount (oversold) relative to its long-term trend.

How To Use

Large positive deviations (orange to red zones) historically signal over-extension and euphoria, often coinciding with cycle tops, aggressive debt-financed Bitcoin purchases, or peak speculative interest in leveraged BTC exposure via equity. These levels frequently precede pullbacks or mean-reversion as the premium compresses. Conversely, deep negative deviations (green to blue zones) indicate undervaluation, typically occurring during risk-off periods, rising interest rates, dilution fears, or broader Bitcoin corrections, creating attractive entry windows for those seeking discounted exposure to Strategy’s Bitcoin treasury strategy. The 200D MA itself acts as the primary trend anchor: sustained price above confirms bullish leadership, while breaks below warn of weakening conviction. Traders use extreme red/orange dots for profit-taking or caution and deep green/blue dots as potential accumulation signals, making this heatmap a powerful tool for timing entries, exits, and risk management in MSTR’s highly cyclical, Bitcoin-correlated price action.