Strategy Inc (NASDAQ:MSTR) shares are under pressure on Thursday as Bitcoin (CRYPTO: BTC) slides again, extending a stretch of volatile trading that has played out over the past few months.
What’s Going On With Crypto?
Bitcoin and Ethereum have been noticeably weaker than other risk assets such precious metals. Crypto analyst Garrett Bullish says the lagging performance stems from three main issues: the after‑effects of a major deleveraging cycle, structural weaknesses in crypto market mechanics and possible manipulation by speculative players.
According to the analyst, the market is still dealing with a "deleveraging hangover" that began in October, which wiped out a large chunk of speculative capital. Retail traders, who often rely on high leverage, were hit the hardest.
Retail capital, a key driver of crypto activity in both Asia and the U.S., has also been pulled into strong rallies in AI‑related stocks and precious metals.
Market Structure Issues
Crypto still doesn't have the same foundation of seasoned institutional investors that traditional markets rely on. Instead, it's largely driven by retail traders and passive ETF flows that tend to follow the mood of the market rather than set it.
Because that deeper layer of institutional liquidity isn't there, prices can swing more easily on narratives or surface‑level correlations. The analyst says this creates openings for big players to take advantage of thin trading periods, sparking sharp selloffs that can snowball into forced liquidations.
Can Strategy Stock Make A Comeback?
Strategy is currently positioned below all key moving averages, indicating a bearish trend. The stock is trading 12.4% below its 20-day SMA, 16.3% below its 50-day SMA and a staggering 53.8% below its 200-day SMA, which suggests ongoing weakness in the price action.
The RSI is at 42.87, which is considered neutral territory. This level indicates that the stock isn’t currently overbought or oversold, but it does suggest that there could be potential for further downside if selling pressure continues.
MACD is above its signal line, suggesting a slight bullish momentum. However, this could be misleading given the overall bearish positioning of the stock relative to its moving averages, so traders should be cautious.
Currently, there are no clearly defined support or resistance levels for Strategy, making it difficult to predict potential price action. If the stock approaches its recent swing low, traders should watch for a potential breakdown, while any rally might struggle against the moving averages overhead.
In October, a death cross occurred when the 50-day SMA crossed below the 200-day SMA, reinforcing the bearish outlook. This crossover often signals a prolonged downtrend, and traders should be aware of its implications for future price movements.
Over the past 12 months, Strategy’s stock has declined by 58.17%, reflecting a significant loss in value. This long-term trend underscores the challenges the stock has faced and highlights the need for traders to remain vigilant.
MSTR Price Action: Strategy shares were down 11.35% at $140.47 at the time of publication on Thursday. The stock is trading at a new 52-week low, according to Benzinga Pro.
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