Analysts are warning that MicroStrategy”s stock, currently under pressure, could plummet to $120 as bearish signals emerge and criticism of its Bitcoin strategy increases. The ongoing scrutiny ties the stock”s performance closely to fluctuations in Bitcoin prices.
Market analysts have highlighted a concerning bearish setup on MicroStrategy”s weekly chart. Chartered Market Technician Aksel Kibar noted a long-developing topping structure, which indicates a likelihood of further declines. He projects that the stock could move toward the $120 mark, especially after breaking below a key multi-month support band. Recent trading patterns reveal lower highs forming, a sign of diminishing momentum and reduced buying interest. At the time of reporting, MicroStrategy”s stock was trading around $146, having rebounded slightly from a recent 52-week low of approximately $143, although shares have dropped over 7% year-to-date.
Further analysis from other market experts indicates that MicroStrategy has deviated from its previous upward trend. Analyst Ted Pillows pointed out that the stock now trades below crucial trend and momentum indicators, suggesting limited strength in the near term. Crypto analyst Benjamin Cowen referenced historical data, indicating that a previous major cycle took 98 weeks to bottom out. He speculated that, if this pattern holds, a potential cycle low for MicroStrategy could be seen around late 2026.
Traders are also monitoring a critical technical level around $130, identified by a trader known as The Great Mattsby using Fibonacci retracement levels and horizontal support. This area could be significant for future price reactions.
Adding to the negative sentiment, economist Peter Schiff has renewed his critique of MicroStrategy”s investment strategy centered on Bitcoin. He highlighted on social media that the company”s shares have plummeted nearly 70% from their peak, attributing this decline to its substantial exposure to Bitcoin. Schiff pointed out that MicroStrategy has spent over $52 billion to acquire more than 700,000 bitcoins, with an average purchase price exceeding $76,000 each. He noted a staggering unrealized loss of $17.44 billion reported during the fourth quarter of 2025.
In his comparison of Bitcoin and gold, Schiff argued that the returns from Bitcoin over the past five years have been lackluster in contrast to gold, which he claims would have provided better performance. He also emphasized that central banks continue to favor gold as a reserve asset, highlighting its historical stability during market turmoil.
