Strategy Inc (NASDAQ:MSTR) shares are falling on Wednesday as Bitcoin (CRYPTO: BTC) breaks below $60,000 and crypto‑linked names sell off across the board.
- Strategy shares are approaching critical lows. What’s behind MSTR weakness?
Bitcoin Slides Under $60,000
Bitcoin dropped below $60,000 on Wednesday, extending a difficult stretch that has pressured most crypto‑exposed stocks. K33 Research noted that investment products tied to Bitcoin have posted their first negative one-year flow reading since November 2023. The last time this signal appeared was only weeks before Bitcoin reached its cycle low in October 2022.
K33 Head of Research Vetle Lunde tracked rolling one-year notional flows across Bitcoin ETPs, futures ETFs and similar vehicles at negative 1,176 BTC as of June 18. He cautioned that the comparison to 2022 is not perfect because the structure of those earlier outflows was different, but the trend still reflects weakening demand.
Strategy’s Preferred Stock Adds Additional Pressure
Strategy is also facing pressure from its STRC preferred stock, which has fallen below $90 for the first time since it launched. K33 highlighted that the company’s annual dividend obligations are now around $1.7 billion.
Lunde estimated that Strategy has roughly ten months of dividend coverage following a recent $300 million capital raise. He said the company is still far from being forced to sell Bitcoin, but the preferred stock weakness adds another layer of stress to the equity.
MSTR Stock: Critical Levels To Watch
From a longer-term perspective, the chart remains firmly under pressure. The stock trades 24.7% below its 20-day simple moving average, 37.8% below its 50-day simple moving average, and 49.6% below its 200-day simple moving average. That kind of distance from the major trend lines signals that every rally attempt has been sold and that the market continues to reprice the stock lower.
Momentum is the main focus right now, and RSI provides the clearest read. RSI sits at 28.27, which indicates deeply oversold conditions and shows that the decline has become stretched. RSI helps identify when selling has accelerated too quickly, which can sometimes lead to short-term rebounds, although it does not confirm a lasting bottom on its own.
The trend structure also reflects significant damage. The 20-day average sits below the 50-day average, and the death cross that formed in October 2025, when the 50-day average fell under the 200-day average, remains in place. RSI first reached overbought territory in April and then slid into oversold territory in June, matching the recent June swing low and reinforcing that sellers have controlled the price action for months.
- Key Resistance: $126.11 — This level aligns with the 20-day simple moving average and often acts as overhead supply during downtrends.
- Key Support: $103.52 — This area sits near the prior 52-week low and is a level traders watch closely for signs of stabilization.
MSTR Shares Are Slipping
MSTR Price Action: Strategy shares were down 8.48% at $95.03 at the time of publication on Wednesday. The stock is trading at a new 52-week low, according to Benzinga Pro.
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