Bitcoin (BTC $88,395.55) is trading near a key long-term support that has held for the past three weeks, putting bulls on alert. Meanwhile, shares of MicroStrategy (MSTR), the largest publicly listed holder of bitcoin, have already fallen below this “safety net,” signaling potential downside risk for the cryptocurrency.
The focus is on the 100-week simple moving average (SMA), which tracks the average price over roughly two years. The 100-week SMA is widely followed by technical analysts as a benchmark for long-term support and trend shifts.
For bitcoin, this moving average has helped stabilize the drop from all-time highs above $126,000. Analysts describe it as a safety net: a bounce here could trigger a bullish rebound.
A break below the 100-week SMA could prompt further selling, as holders exit positions and bearish sentiment rises. MicroStrategy’s recent decline below this level in November serves as a warning. Previously, MSTR also led bitcoin lower after breaching the 50-week SMA.
For BTC bulls, defending the 100-week SMA is critical. Holding above it may spark a rebound, while a breakdown risks deeper losses along MSTR’s trajectory
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