Bitcoin Trades Near Key Long-Term Support Level Amid MicroStrategy Stock Decline
Bitcoin (BTC) is currently trading near its 100-week simple moving average (SMA), a crucial long-term support level. This SMA has served as a safety net for the past three weeks, preventing BTC's decline from highs exceeding $126,000.
A breach below this support could trigger accelerated selling and lead to deeper losses for BTC. Currently, BTC is priced around $86,778, close to the 100-week SMA, making it vital for bulls to defend this level to avoid further downturns.
The significance of this support is underscored by the performance of MicroStrategy (MSTR) shares, which breached their 100-week SMA back in November, falling sharply to $220 and later to $160. MSTR is currently down over 60% from its year-to-date high of $457.
MSTR's prior move below its 50-week SMA had indicated further downside for BTC, suggesting a correlation between BTC's price path and MSTR's stock performance. If BTC fails to hold the 100-week SMA, it risks following MSTR into deeper losses. Maintaining this support is seen as key to supporting a rebound if prices manage to bounce above it.
