GameStop's Bitcoin Bet: 178% Rally Ahead if Support Reclaimed

GameStop's stock surged by 18% in the past 24 hours, driven by rumors of a bold Bitcoin bet that sparked a rally. The video game retailer's shares have gained 65.44% this week, and a further 23.08% rally is needed to break even on the monthly timeframe. Market sentiment remains bullish, but reclaiming a critical support level is crucial for further gains, which could potentially fuel a 178% rally.

GameStop is reportedly exploring cryptocurrency investments, with sources suggesting the company is considering adding Bitcoin to its portfolio and looking into promising altcoins. This renewed interest may have been sparked by Bitcoin's explosive 129.70% rally from a February 12 low of $47,710.01 to an all-time high above $109,000. GameStop's move follows its previous foray into crypto and NFTs, with the company launching an NFT marketplace in 2022 but discontinuing it in 2023 due to regulatory uncertainty. The retailer now joins a growing list of institutions investing in digital assets, including Semler Scientific and MicroStrategy.

To continue its rally, GameStop must reclaim the support level at 0.0025. If successful, the asset could see a 178% rally, reaching $0.0070 and establishing a new high. However, failure to trade above this support level could result in GameStop returning to the descending channel. The Relative Strength Index (RSI) has entered the bullish zone with a current reading of 50.82, indicating that GameStop could sustain its rally if the RSI continues on its upward path.