Concerns Over ‘MSTR Hit Job’ Shake Bitcoin Price Amid Imminent Technical Breakdown
Bitcoin faced renewed pressure on Wednesday, driven by institutional concerns and a troubling technical setup. The world’s leading cryptocurrency is caught in a bearish flag pattern, suggesting that sellers are taking a pause rather than retreating completely.
The current market situation indicates uncertainty, especially since Bitcoin remains below its declining 100-day and 200-day exponential moving averages (EMAs). This scenario suggests that the recent recovery may not be sustainable. Traders are wary, particularly as the lower trendline approaches a potential breakdown point, which could trigger a move towards $77,400, a target noted by many analysts.
Technical Breakdown Risks
For Bitcoin to escape this bearish trend, it needs to break through the 50-4H EMA around $88,655, as well as the upper boundary of the bear flag near $90,000. As it stands, the market sentiment is negative, with investors treating any rally as an opportunity to mitigate risk ahead of potential volatility.
Institutional Concerns Around ‘MSTR Hit Job’
Beyond the charts, significant concern is stemming from the tension between Bitcoin giant MicroStrategy (MSTR) and index provider MSCI. MSCI is evaluating whether firms with substantial digital asset investments should remain in prominent equity benchmarks. This decision, expected by January 15, 2026, comes as crypto sentiment is already fragile, raising fears of forced selling and possible market repercussions.
Analysts at CryptoQuant highlighted the stakes involved. If MSTR is removed from major indexes, it could trigger billions in automatic sales from passive funds. This scenario could be interpreted as a broader institutional clash against MSTR’s Bitcoin acquisition strategy.
Market Reactions and Controversy
JPMorgan has also weighed in on the risks associated with forced selling, resulting in a backlash within the crypto community. The situation intensified when analyst Adrian accused JPMorgan of executing an “MSTR hit job,” aimed at diverting investors to the bank’s leveraged Bitcoin products. He suggested that this move could harm MSTR to promote their own Bitcoin exposure options.
In an effort to alleviate investor fears, MicroStrategy issued a statement on November 26, asserting that its liquidity position remains secure even if Bitcoin prices decline significantly. The company emphasized that even if Bitcoin fell back to its historical cost basis of $74,000, it would still have a 5.9 times asset coverage relative to its convertible debt, referred to as its BTC Rating. Although this reassurance provided some comfort, it did little to quell immediate fears as market volatility looms.
As of the latest data, Bitcoin is trading at $87,777.63, reflecting the ongoing tension and uncertainty in the market.
