MSTR Stock Faces Steep Decline Amid Bitcoin Crash
On October 17, the MSTR stock price took another hit as Bitcoin and other cryptocurrencies tumbled. The stock has formed a death cross pattern, signaling further downward pressure.
Strategy, the largest Bitcoin treasury company, saw its stock drop to $280, a 40% decrease from its yearly high. This decline is meaningful, marking its lowest point since April 15. The daily chart reveals a bearish trend,with the MSTR share price decoupling from Bitcoin’s performance. Even as Bitcoin reached record highs earlier this month, MSTR remained in a bear market. The stock price has now fallen below the critical $292 support level.
The death cross pattern, where the 50-day and 200-day Exponential Moving Averages intersect, is a strong bearish signal. This, combined with downward-pointing oscillators like the RSI and MACD, suggests more declines.The next key target is $230, with potential for further drops to $200.
Bitcoin’s bearish turn will likely accelerate MSTR’s downtrend. Strategy holds 640,250 Bitcoin coins, worth over $67 billion. Technical analysis indicates Bitcoin could drop below $100,000. The double-top and rising wedge patterns on the daily and weekly charts support this prediction.
MSTR’s net asset value is also falling, making it harder to raise capital.
Other Bitcoin treasury companies like Metaplanet, MicroCloud Hologram, KindlyMD, and Semler Scientific have also seen their NAV multiples fall below 1.
