Santa Claus, MSTR and the USD 85K Question: Can Bitcoin Avert a Festive Flop?

🌟🌟🌟Bitcoin is currently sliding down a slippery slope, trading around USD 86,522.  It is down significantly from its peak in October.  The Christmas lights are blinking red.  The market is jittery.  Can Bitcoin hold key support levels this week?  Or is a painful drop to USD 70k on the cards?

In the midst of this volatility, the boldest player in the field, $Strategy(MSTR)$  CEO Michael Saylor is doubling down.  MSTR bought nearly USD 1 billion into Bitcoin for a 2nd consecutive week.  MSTR is continuing to accumulate as prices pulled back.  MSTR is betting the farm that this dip is just a speed bump on the road to glory.

Bitcoin at a Crossroad: USD 85k or USD 70k?

The USD 85k Lifeline : Key support is currently identified around the USD 84k to USD 85k range.  This level represents a critical battleground.  Options traders are stacking bets here.  A bounce here could stabilise the market and restore holiday cheer.

The USD 70K Crash Landing: The risk of a breakdown is real.  The Death Cross pattern is active.  50 day moving average is below the 200 day, a deeply Bearish technical signal. 

If the USD 80k psychological support level fails, a cascade of selling could trigger forced liquidations and send prices plummeting toward the next major technical target and year  long low around USD 74k.  This could potentially go even  lower to USD 70k.

The Bank of Japan's rate hike decision this week is a potential catalyst that could amplify market volatility in either direction.

MSTR: Can It Hit USD 150 again?

MSTR has been on a sharp downward momentum, currently trading around USD 167.50 after hitting highs above USD 400 earlier in 2025.  MSTR is highly leveraged to Bitcoin's performance and has recently broken key support levels around USD 180.

The question of MSTR retesting the USD 150 level is now a very real possibility, given the current Bearish trend and strong resistance around USD 190.

Support Levels : MSTR's next support is seen around USD 160 with further downside potential if Bitcoin slides.

Analyst Targets: Despite recent dismal performance, analysts hold an average price target of around USD 475 for MSTR over the next 12 months, indicating a massive potential upside if the long term Bitcoin thesis plays out.

Would You Stay Firmly Invested?

This market is not for the faint hearted investors.  It is a game of high conviction and extreme volatility. 

If you are a long term believer in the digital gold narrative of Bitcoin like Michael Saylor, the current slide is an accumulation opportunity. 

But if you are technically minded or risk averse,   the current chart formations and macro economic headwinds scream caution.

Ultimately we are waiting to see if Santa Claus will give us gifts of new highs or if the Grinch steals our gains.

So let's observe carefully and respond thoughtfully. 

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