GameStop (GME) Stock Surges on Bitcoin Investment Speculation – Key Levels to Watch
GameStop shares jumped nearly 8% in extended trading on Thursday following reports that the gaming retailer and meme stock favorite is considering investing in Bitcoin and other cryptocurrencies.
According to CNBC, GameStop is exploring alternative asset classes, including crypto investments, as part of its evolving financial strategy. The report emerged after GameStop CEO Ryan Cohen shared a photo of himself with Michael Saylor, co-founder of MicroStrategy (MSTR), the largest corporate holder of Bitcoin. However, CNBC clarified that Saylor is not currently involved in GameStop’s crypto discussions.
Despite a 16% year-to-date decline, GameStop shares have surged over 85% in the past 12 months, driven by renewed interest from retail investors, including “Roaring Kitty” (Keith Gill), a prominent influencer in the meme stock space.
Technical Analysis: Falling Wedge Breakout Imminent
GameStop stock has been consolidating within a falling wedge since reaching a seven-month high in early January. This pattern typically signals a bullish breakout, which now appears likely following the latest crypto-related speculation.
Additionally, the Relative Strength Index (RSI), while still below 50, has risen from near oversold levels, suggesting improving momentum that could support a move higher in the coming sessions.
Key Resistance Levels to Watch
- $29: A significant resistance zone where past price action has faced selling pressure. This level aligns with July’s swing high and could serve as a near-term barrier.
- $32: If buying pressure sustains above $29, the next upside target is around $32, an area near multiple January peaks where early investors may take profits.
- $42: A measured move projection from the previous uptrend (October–January) suggests a 60% upside from Thursday’s closing price, making $42 a potential longer-term target.
Critical Support Level to Monitor
On any retracements, investors should watch the $25 level, which holds multiple technical confluences:
- 200-day moving average (a key long-term trend indicator)
- February’s monthly low
- September’s countertrend peak
A break below $25 could weaken bullish momentum, signaling a potential trend reversal.
Conclusion
GameStop’s potential entry into Bitcoin and crypto investments has sparked fresh interest among traders. If confirmed, this move could significantly impact GME’s stock trajectory, aligning with its history of meme-driven rallies. With a falling wedge breakout on the horizon, $29, $32, and $42 remain the key upside targets, while $25 serves as a crucial support level.
As always, traders should exercise caution and conduct thorough research before making investment decisions. Stay tuned for further updates as the GameStop-Bitcoin narrative unfolds. 🚀
