Strategy Bears Break Key Support While Bitcoin Holds Above 50-Week SMA
Shares of Strategy (MSTR), the world’s largest publicly-listed Bitcoin holder, have fallen below a critical bull market support, leaving Bitcoin (BTC) bears trailing.
The drop centers on Strategy breaching its 50-week simple moving average (SMA), a level that had consistently acted as a springboard since March 2023, ending corrective pullbacks and triggering buying that propelled shares to new highs for over two years. Recent weakness suggests waning buying pressure and potential further downside.
Bitcoin, by contrast, remains above its 50-week SMA despite pulling back from record highs above $124,000, keeping its broader bullish trend intact.
Strategy holds 640,250 BTC—worth roughly $71.73 billion—according to Bitcointreasuries.net. Its accumulation has helped drive BTC’s rally from $30,000 to $124,000, making Strategy’s technical weakness a potential cautionary signal for BTC bulls.
Momentum indicators like the weekly MACD are flashing red for Strategy, while Bitcoin’s MACD is also bearish but has yet to break its SMA. As of writing, BTC traded near $111,700, with its 50-week SMA at $101,872, per TradingView.
