Bitcoin is nearing a key "life and death line"! Analysts: Strategy has already fallen below, long positions under pressure.

Analysts point out that Bitcoin is hovering near the “critically important long-term support line” and has been holding on for 3 weeks, which has put the nerves of the long positions in the market on edge. However, the publicly traded company Strategy (MSTR), the world's largest Bitcoin holder, has already seen its stock price break this “safety line” first, sending a strong bearish signal to the crypto assets market.

CoinDesk senior analyst and chartered market technician Omkar Godbole explained that this “safety line” is the extremely critical “100-week simple moving average (100-week SMA)” in technical analysis, which mainly reflects the average cost over the past two years. It is an indicator used by major market technical analysts to identify significant trend reversals, long-term support, or confirm crashes.

From a trend perspective, the 100-week moving average has provided strong support for three consecutive weeks, stopping the severe fall of Bitcoin from its historical high of $126,000.

Omkar Godbole describes this moving average as a “safety net” that successfully catches Bitcoin when the price falls.

If the coin price can rebound here, the market will expect this support to act as a “springboard,” becoming the starting point for a new wave of counterattack; conversely, if the coin price falls below the 100-week moving average, it may lead to a loss of confidence among holders, increased selling pressure, and allow the bears to further seize control, potentially expanding the downtrend.

Concerningly, the stock price trend of Strategy (MSTR) seems to have already rehearsed the worst-case scenario. Please see the trend comparison in the chart below:

The MSTR stock price fell below the 100-week moving average when it dropped to $220 at the beginning of November, and the selling pressure continued to expand, with the stock price plunging all the way down to $160, a decline of over 60% from this year's high of $457.

For Bitcoin long positions, this is a signal that cannot be ignored, as MSTR has previously led the Bitcoin trend multiple times. Earlier, when MSTR broke below the 50-week SMA, which is also seen as a long-term trend watershed, it also indicated that the subsequent market for Bitcoin would weaken.

The current situation is very clear: Bitcoin long positions must defend the 100-week moving average at all costs.

If it can hold, this will become the starting point for a counterattack; if it unfortunately loses support, Bitcoin is likely to follow in MSTR's footsteps, falling into a deeper decline.

_
Disclaimer: This article is for providing market information only. All content and opinions are for reference only and do not constitute investment advice, nor do they represent the views and positions of the blockchain. Investors should make their own decisions and trades, and the author and blockchain will not bear any responsibility for direct or indirect losses incurred by investors' trades.
_

Tags: 100-week Simple Moving Average 100-week SMA Omkar Godbole analyzes the Crypto Assets market coin price investment support Bitcoin Moving Average market trend