In a significant market movement on Wednesday, shares of Strategy (MSTR) slipped to $326, marking a 4% dip below its 200-Day Moving Average (DMA) of $340. This technical marker, often scrutinized by traders to gauge long-term trends, suggests a potential shift in momentum that has caught the attention of investors and analysts alike. The 200-DMA serves as a litmus test for market sentiment, often acting as a line of support or resistance. When shares traverse below this line, it raises eyebrows—and questions about future performance.
MSTR Struggles Against Bitcoin’s Steady Course
In the crypto market’s dynamic landscape, where volatility is king, MSTR’s recent slide contrasts sharply with Bitcoin, which has held relatively steady. Over the past month, Strategy has declined by a steep 21%, while Bitcoin has seen a marginal dip of just 3.5%. This divergence highlights the complexities and unique challenges faced by Strategy, a company deeply intertwined with the cryptocurrency’s fortunes. This follows a pattern of strategic moves, such as when Strategy added $51M in Bitcoin as the price hit $124K ahead of a sharp dip.
James Chanos, a well-known short-seller, has been vocal about his bearish stance on MSTR, and it seems his strategy is paying dividends. “There’s no denying the momentum,” Chanos remarked, noting his decision to short MSTR while taking a long position in Bitcoin. For now, his bet is looking prescient.
Historical Context and Market Sentiment
Historically, the 200-DMA has acted as a reliable support level for MSTR. Take last April during the so-called “Trump tariff tantrum”—MSTR tested this threshold before bouncing back. A similar pattern played out in the summer of 2024, with the stock finding its footing at this technical boundary before resuming an uptrend. Will history repeat, or are we witnessing the beginning of a more prolonged downturn?
Market technician J.C. Parets weighed in, observing that the ratio between MSTR and IBIT (BlackRock’s spot bitcoin ETF) has plummeted to a five-month low. “This one is accelerating quickly,” Parets noted, suggesting that the current slide could gather further momentum if the market sentiment doesn’t shift.
Future Implications and Unresolved Questions
As we move deeper into 2025, the path forward for MSTR remains unclear. Much depends on Bitcoin’s price action and the broader market climate. Investors are left pondering whether MSTR’s break below the 200-DMA is merely a blip in its trajectory or a harbinger of more sustained challenges. Michael Saylor has signaled that Strategy will buy the Bitcoin dip, which could influence future market dynamics.
The cryptocurrency sector, known for its wild swings and the unexpected, could yet throw a curveball—or provide a surprising rally. For now, stakeholders are keeping a vigilant eye on these technical levels, waiting to see if MSTR can regain its footing or if the bears will continue to have their day.
In the fluid, unpredictable world of crypto, few things are certain. But one thing’s for sure: all eyes will remain on MSTR—and Bitcoin—as this story unfolds.
Source
This article is based on: Strategy Tumbles Below 200-Day Moving Average as Shares Continue to Underperform Bitcoin
Further Reading
Deepen your understanding with these related articles:
- Michael Saylor signals Strategy will buy the Bitcoin dip
- BitMine Adds $1.7 Billion in Ethereum, Now Second Behind Strategy in Crypto Treasury Rankings
- WiseLink Becomes First Taiwan-Listed Company To Invest in a Bitcoin Treasury Strategy
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
