Bitcoin dip pushes Strategy stock down 7.67% — downside momentum accelerates

Traders Union
All News
Financial News
Strategy slides 7.67% to $123.04 today

Highlights

Strategy's Bitcoin holdings are in an unrealized loss for the first time as Bitcoin trades below its average acquisition cost, pressuring funding options.
The company increased the dividend on Stretch Series A Perpetual Preferred Stock, signaling a strategic shift in capital-raising ahead of its upcoming earnings report.
MSTR trades at $123.04, well below all major moving averages, with strong downside momentum and an 80%+ probability of further declines into the $120–$128 range short term.

Capital strategy shifts as Bitcoin losses trigger funding questions

Strategy's Bitcoin holdings have entered an unrealized loss position for the first time as Bitcoin's price fell below its average acquisition cost, raising questions about funding future Bitcoin purchases through new share issuance. In response, the company has increased the dividend on its Stretch Series A Perpetual Preferred Stock to improve capital attraction, pointing to a strategic shift in how it raises funds. These developments come as the company prepares for its upcoming earnings report and continues to amplify moves relative to Bitcoin due to its leveraged exposure.

Bearish momentum intensifies as volatility and oversold signals converge

Momentum signals remain bearish, with both the MACD and ADX confirming a downward trend, while RSI and Stochastic RSI register oversold conditions and the Commodity Channel Index also signals oversold. The Bull/Bear Power indicator is deep in negative territory, confirming strong seller dominance throughout the session. The Awesome Oscillator backs the prevailing sell momentum. Today's price opened with a gap down from the previous close ($133.26 to $130.12) and swiftly moved to session lows near the bottom of its intra-day range ($123.94 – $130.77). Volatility is high, with sustained downside pressure dominating intraday activity. Price action and momentum indicators are in alignment, confirming bears are in control.

Further losses favored as volatility and support breakdown drive outlook

For the coming five trading days, the expected range is adjusted to $120 to $128, given recent volatility and the positioning well below all major moving averages. The probability of further downside is very high (more than 80%), while a rebound appears much less likely. Baseline scenario: MSTR fluctuates in a narrow band near current lows, maintaining a sideways-to-downward bias. Bullish scenario: price rebounds and challenges resistance zones above $128, though conviction is limited. Bearish scenario: price slips below $120, exposing further downside as strong selling momentum persists and oversold signals remain.

Viktoras Karapetjanc, expert at Traders Union, sees persistent downside momentum in Strategy as the price stays well below all key moving averages. He notes that the recent unrealized loss on Bitcoin holdings and a shift in capital-raising tactics add macro uncertainty, while strong bearish sentiment dominates. Karapetjanc believes volatility will likely keep MSTR under pressure, but constructive outlook on the digital asset sector can eventually help attract buyers if market tone shifts. "Despite current headwinds, I see recent strategic adjustments as a foundation for medium-term recovery if sentiment improves and macro flows turn favorable."

Previously it was reported that MicroStrategy continues to trade under persistent downside pressure, remaining well below all major moving averages with no significant support in sight. Key momentum indicators—including MACD, ADX, and RSI—signal sustained bearish momentum and oversold conditions, as the stock sits near session lows with sellers dominating the intraday action.

Source of Data: MSTR Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.