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By James Van Straten, AI Boost, Stephen Alpher|Edited by Stephen Alpher
Updated Aug 20, 2025, 4:14 p.m. Published Aug 20, 2025, 4:10 p.m.
- MSTR is down 30% from its 2025 peak of $457 hit last month and now trades just below the 200-DMA at $340, a level that has historically acted as support.
- Bitcoin has dipped 3.5% over the past month, while Strategy has sizably underperformed, plunging 21%.
- Jim Chanos previously opened up a short MSTR/long BTC bet that’s looking like a winner at the moment.
Strategy (MSTR) fell to as low as $326 on Wednesday, trading about 4% below the 200-Day Moving Average (DMA) of $340, a key level markets watch for trading ideas.
The indicator is a widely used technical measure that smooths out price data over roughly nine months of trading, helping investors identify long-term trends. When a stock trades above its 200-DMA, it is generally seen as being in an uptrend, while trading below it may signal potential weakness or a shift in momentum. Because of its role as a key support or resistance level, the 200-DMA is closely watched by both traders and long-term investors.
STORY CONTINUES BELOW
In recent years, the 200-DMA has been a notable level of support for MSTR.
For instance, in April 2025, during the so-called “Trump tariff tantrum,” the stock tested this level before rebounding. A similar pattern emerged during the summer of 2024, when MSTR once again found a floor around the 200-DMA before resuming its upward trajectory.
Whether the current dip below this technical threshold proves temporary or signals a more sustained downturn will likely depend on both bitcoin’s price action and broader market sentiment.
Famed short-seller James Chanos has been publicly bearish on Strategy for a number of weeks, saying he’s opened up a sizable bet against the Michael Saylor-led company by shorting MSTR against a long in bitcoin.
Of late, the trade has been looking like a winner, with MSTR lower by 21% over the past month compared to bitcoin’s very modest 3.5% decline.
Market technician J.C. Parets noted on Wednesday that the ratio between MSTR and IBIT (BlackRock’s spot bitcoin ETF) has now fallen to a five-month low. “This one is accelerating quickly,” said Parets.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.
James Van Straten is a Senior Analyst at CoinDesk, specializing in Bitcoin and its interplay with the macroeconomic environment. Previously, James worked as a Research Analyst at Saidler & Co., a Swiss hedge fund, where he developed expertise in on-chain analytics. His work focuses on monitoring flows to analyze Bitcoin’s role within the broader financial system.
In addition to his professional endeavors, James serves as an advisor to Coinsilium, a UK publicly traded company, where he provides guidance on their Bitcoin treasury strategy. He also holds investments in Bitcoin and Strategy (MSTR).
“AI Boost” indicates a generative text tool, typically an AI chatbot, contributed to the article. In each and every case, the article was edited, fact-checked and published by a human. Read more about CoinDesk’s AI Policy.
Stephen is CoinDesk’s managing editor for Markets. He previously served as managing editor at Seeking Alpha. A native of suburban Washington, D.C., Stephen went to the University of Pennsylvania’s Wharton School, majoring in finance. He holds BTC above CoinDesk’s disclosure threshold of $1,000.
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