MicroStrategy Stock Flashes ‘Death Cross’ as Bitcoin Slumps — Analysts Warn of Deeper Correction Ahead

MicroStrategy (MSTR) shares are facing renewed selling pressure as both Bitcoin and the broader crypto market retreat sharply. On October 17, the stock confirmed a “death cross” formation — when its 50-day moving average crosses below the 200-day average — a classic technical warning of prolonged bearish momentum.

MSTR closed the day down 4.8% at $238, extending a multi-week downtrend that has erased nearly 25% of its market value since late September. The pattern suggests that momentum has fully shifted to the downside, and technical models now flag potential targets at $230, $210, and even $190 if bearish pressure persists.

The selloff closely tracks Bitcoin’s recent slide below $110,000, as MicroStrategy’s performance is heavily correlated with BTC movements. The firm currently holds 226,331 Bitcoin, worth approximately $25 billion at current prices, representing the largest corporate Bitcoin treasury in the world.

As Bitcoin continues to trade within a fragile range of $108,000–$117,000, analysts warn that further weakness could intensify losses for MSTR. A break below $108K BTC could push the stock toward yearly lows, while a strong BTC rebound could trigger short-covering and a quick recovery.

Beyond price action, MicroStrategy’s leverage strategy has raised additional concern. The company financed part of its Bitcoin accumulation using convertible debt and stock issuance, amplifying potential downside during volatile periods. With rising interest rates, a weakening tech sector, and investor risk aversion, MSTR now finds itself in a precarious position.

Despite the technical warning, CEO Michael Saylor remains publicly optimistic. He reaffirmed the company’s “Bitcoin forever” strategy, emphasizing that temporary volatility doesn’t change the long-term outlook for digital assets. “We’re playing the long game,” Saylor stated in a recent interview, suggesting that institutional demand will eventually validate their approach.

Still, the charts tell a sobering story. The death cross pattern, historically associated with multi-week downtrends, signals that MicroStrategy could face more pain before finding a bottom.

The key question now:

Will MicroStrategy’s bold Bitcoin bet prove visionary once again — or is this the beginning of its biggest stress test yet?