Bitcoin (BTC $88,395.55) is hovering near a key long-term support level that has held for three weeks, keeping bulls cautious. Shares of MicroStrategy (MSTR), the largest publicly listed bitcoin holder, have already fallen below this “safety net,” signaling potential downside for the cryptocurrency.
The focus is the 100-week simple moving average (SMA), which tracks the average price over roughly two years. Technical analysts widely monitor this level as a benchmark for long-term trend shifts and support.
For bitcoin, the 100-week SMA has stabilized the pullback from all-time highs above $126,000. Analysts liken it to a safety net: a bounce here could spark a bullish rebound.
A breakdown below the SMA, however, could trigger further selling as holders exit positions and bearish sentiment builds. MicroStrategy’s decline below the 100-week SMA in November highlights the risks. Earlier, MSTR also led bitcoin lower after breaching the 50-week SMA.
Defending the 100-week SMA is now critical for BTC bulls. Holding above it may support a rebound, while a breakdown risks deeper losses following MSTR’s path.
