This is a daily analysis of Coindesk analyst and chartered market technician Omkar Godbole.
Strategy (MSTR) Bears have pierced a Key Bull Market Support, leaving Bitcoin carries afterwards.
The technical collapse centers around the strategy’s recent violation of the 50-week simple sliding average (SMA). This SMA had consistently served as a springboard since March 2023, which marked the end of corrective withdrawals and triggered purchase interest that propelled shares to new heights for over two years.
But in recent weeks, Bears have managed to establish a foothold below this decisive average, signaling a significant weakening in the purchase pressure and exposing the stock to further downward.
Bitcoin Bears, on the other hand, have not yet achieved this. BTC’s own 50-week SMA has served as a reliable springboard in the last two years, where prices still have above this level despite retiring from record highs over $ 124,000.
Essentially, BTC’s wider Bullish course remains intact.
Nevertheless, the recent technical deterioration of the strategy guarantees attention as it is the largest listed BTC holder in the world with a coin stash of 640,250 BTC ($ 71.73 billion), according to BitCinTreasuries.net.
Its sustained BTC accumulation has been an important driving force for the rally from $ 30,000 to $ 124,000 over the last two and a half years, making its current award -winnity a potentially cautious signal for BTC Bulls.
Both strategy and Bitcoin at the same time broke over their respective 50-week SMAs in the first quarter of 2023, where he began at impressive rallies, with the sliding average that serves as a reliable floor (marked with boxes) under corrections.
The floor has now given way to strategy bears, with popular momentum indicators such as the weekly MacD histogram that flashes red. Bitcoin’s MacD is also in the red one; Whether its price will follow and break during the 50-week SMA is to see.
From writing, BTC changed hands near $ 111,700 with SMA Support to $ 101,872. Per Data Source TradingView.
Read: Bitcoin May Tank to $ 100,000 as Friday’s BTC crash reinforced 2017–21 Trendline -resistance
