Strategy Bears Break Key Support While Bitcoin Holds Above SMA
Shares of Strategy (MSTR), the world’s largest publicly-listed Bitcoin holder, have fallen below a critical bull market support, while Bitcoin (BTC) remains above its 50-week simple moving average (SMA).
Strategy’s breach of its 50-week SMA marks the first significant corrective signal since March 2023, a level that had historically ended pullbacks and triggered buying that pushed shares to new highs. The move signals weakening buying pressure and potential further downside.
Bitcoin, by contrast, continues to hold above its 50-week SMA despite retreating from record highs above $124,000, keeping its broader bullish trend intact.
Strategy holds 640,250 BTC, worth approximately $71.73 billion, according to Bitcointreasuries.net. Its accumulation has fueled Bitcoin’s rally from $30,000 to $124,000, making the stock’s technical weakness a potential cautionary indicator for BTC bulls.
Momentum indicators like the weekly MACD are bearish for Strategy, while Bitcoin’s MACD is also red but has yet to breach its SMA. BTC traded near $111,700, with its 50-week SMA at $101,872, per TradingView.
