Strategy (formerly MicroStrategy) kept buying bitcoin last week, but a rare bearish chart pattern suggests more pain ahead for the crypto.
In an X post, Michael Saylor said the company purchased 2,486 Bitcoin (BTC) for $168 million. The acquisition lifts Strategy's total holdings to 717,131 BTC, now worth roughly $50 billion.
Funding via share sales continues to dilute holders
The purchase was executed by selling shares, a method that dilutes existing shareholders. Data shows the company still has over $7.8 billion in common shares and $20 billion in preferred STRK available for sale. Outstanding shares now exceed 312 million, a sharp increase from a few years ago. Saylor has pledged to keep buying bitcoin indefinitely and plans to swap debt for equity in the future.
Standard Chartered sees downside to $50K
Meanwhile, Standard Chartered warned bitcoin may drop to $50,000 before recovering, cutting its year-end target from $150,000 to $100,000. Other headwinds include plunging futures open interest, which fell from a $95 billion peak last year to $43 billion.
Geopolitical risks are also rising. Despite ongoing U.S.-Iran talks, President Trump sent another carrier to the Middle East, and Iran is conducting drills near the Strait of Hormuz. Bitcoin has proven it is not a safe-haven asset, meaning a potential conflict could add further pressure.
Bearish pennant points to $60,000 test
Technically, bitcoin is forming a bearish pennant — a vertical flagpole followed by a symmetrical triangle. The two trendlines are nearing their convergence, suggesting an imminent breakdown. If it occurs, bitcoin could revisit the year-to-date low of $60,000. The bearish view would be invalidated only if the price breaks above the key resistance at $80,117 (November's low).