What's behind Strategy's latest 4.0% stock pullback?

Traders Union
All News
Stocks
MicroStrategy slides 3.95% today

Highlights

Strategy Inc. raised $467 million via stock sales, lifting its U.S. dollar reserve to $3 billion while maintaining 843,775 BTC holdings.
The company preserves $1.25 billion in unused bitcoin sale capacity to support preferred stock dividends and service debt obligations.
Strategy Inc. trades below major moving averages with a strong bearish technical profile, facing a high probability of continued downside toward $85.01–$96.79 over the next week.

Dollar reserves rise while bitcoin holdings unchanged amid selling pressure

Strategy Inc. raised approximately $467 million through sales of its common stock in the week ending July 12, 2026, increasing its U.S. dollar reserve to $3 billion according to regulatory filings. The company made no changes to its bitcoin holdings during this period, which remain at 843,775 BTC acquired for about $63.7 billion. These reserves are intended to support preferred stock dividends and interest payments on outstanding debt, and the company retains an approved Bitcoin Monetization Program with capacity for up to $1.25 billion in future bitcoin sales, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, notes strong downside pressure in Strategy stock. He sees little benefit for shareholders from the cash raise, as funds are being used for liquidity instead of bitcoin accumulation. Persistent trading below moving averages and neutral readings from the CCI and AO reinforce his cautious stance. The approved Bitcoin Monetization Program does little to offset investors' skepticism in the short term. Kharitonov warns that a failure to hold $90.12 could trigger further selling. He concludes: "The company's focus on reinforcing reserves over growth fuels continued bearish sentiment and makes any upside scenario improbable this week."

Viktoras Karapetjanc, expert at Traders Union, views the $467 million cash raise as a proactive move strengthening the company's financial base. He believes Strategy's large bitcoin reserves and flexible monetization program set up potential for renewed institutional interest. The stock's immediate technicals may be pressured, but Karapetjanc sees these as providing opportunities for accumulation on weakness. He expects a bullish reversal if the price holds above $90.12 and buyers regain confidence. Karapetjanc adds: "With robust reserves and the ability to monetize assets, the company's bullish structure remains intact for forward-thinking investors."

Parshwa Turakhiya, analyst, identifies a mixed short-term setup for Strategy stock. He notes that bearish technical momentum is dominant, but intraday positive Bull/Bear Power and overbought Stochastic RSI suggest a possible pause or minor reversal. The $90.12 level is key for both sides, with a breach opening up downside, while a bounce could spark a limited rebound toward $96.79. Turakhiya states: "Traders should stay nimble, as sentiment remains fragile and volatility could create tactical opportunities in either direction this week."

Bearish momentum persists as resistance holds and signals diverge

Strategy is trading below the 20-day, 50-day, and 200-day moving averages ($102.83, $137.47, and $175.19 respectively), indicating persistent pressure from sellers across short-, medium-, and long-term timeframes. The nearest resistance is at $91.78, with immediate support at $90.12. The longer-term bearish alignment of the 50-day versus 200-day moving averages highlights an entrenched negative trend. Momentum signals are heavily skewed bearish, with the MACD and Average Directional Index (ADX) forecasting a strong sell and elevated selling pressure. The Relative Strength Index (RSI) is at 37.9 with a sell outlook, not yet oversold, while the Stochastic RSI at 84.03 signals overbought conditions and a potential pause in any rebound. Bull/Bear Power (BBP) is positive at 1.23, showing buyers dominate intraday, but it also forecasts an overbought backdrop. The Commodity Channel Index (CCI) and Awesome Oscillator (AO) are both neutral, indicating some divergence among oscillators. The stock last traded at $90.9, down $3.74 or 3.95% after opening with a downside gap of about $2.97 or 3.14%. Price is mid-range for the session, and intraday volatility at 2.43% reinforces the tone of downside pressure after the open that matches the dominant bearish momentum readings.

Earlier, analysts noted that persistent technical weakness and a shift toward cash retention had reinforced a bearish outlook for Strategy shares. The latest developments confirm this cautious stance, with traders advised to monitor the $91.78 resistance for any sign of a trend reversal amid ongoing downside pressure.

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

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.