MSTR has formed a bearish fractal pattern — mirroring its 2021-2022 downtrend — and insider selling suggests weakness that historically aligns with BTC declines.
Such pullbacks often precede steep December losses, hinting at a potentially deeper downturn if selling pressure persists.
Strategy (formerly MicroStrategy), the leading corporate holder of Bitcoin, currently holds a portion of its treasury worth $56.23 billion in the market, and could be a key determinant of the king coin’s next phase.
The company, which added 9,062 Bitcoin [BTC] in November at publication time, has seen its MSTR token plunge into a bearish phase, according to recent analysis.
Historically, this has not been favorable for Bitcoin investors.
MSTR has formed a fractal pattern, a similar movement that previously led the asset into a significant bearish phase that lasted roughly a year between 2021 and 2022.
This pattern has now become visible as insiders, including company directors, sell off their MSTR holdings into the open market, with millions of dollars in sales already recorded.
The earlier fractal formation involved MSTR trading lower on the chart for 689 days. So far, the current downtrend that mirrors that move has only covered about 364 days, according to chart data.
When overlaid on Bitcoin’s daily chart, the movement shows a striking correlation. While this does not guarantee the same outcome, it suggests that Bitcoin could sweep further to the downside.
This implies that Bitcoin could enter a bearish phase lasting around 325 days, which aligns with a potential bottom around October 2026.
Notably, MSTR has a Net Asset Value (NAV) multiple of 0.95, suggesting it is trading at a slight discount relative to its Bitcoin holdings.
A recent Alphactal analysis shows that Bitcoin has now pulled back 33% from its all-time high in the market.
Historically, such declines have often been followed by a bearish December, during which the asset records major losses in value.
“The crypto market just flashed one of the clearest signs of structural weakness. And this opens the door to heavy volatility in the coming days — both up and down.”
This suggests that while selling pressure remains dominant in the market, there is still a strong possibility that a deeper bearish move could occur in December.
AMBCrypto analyzed how Bitcoin has performed in December over the past five years.
Market analysis revealed that, aside from December 2021 — when Bitcoin declined and continued that trend into the new year, triggering a broader bearish cycle — other years followed a different pattern.
In those other years, December either remained bullish or preceded the beginning of a broader Bitcoin rally, with the asset recording notable gains.
For now, there is no clear guarantee of what December will bring based solely on historical charts.
However, when viewed through the lens of the four-year cycle, 2025 could witness a similar drop to what the market is experiencing today.
The broader market remains in a bearish phase, with liquidity across the ecosystem dropping significantly.
Between the market’s peak in October and now, approximately $1.54 trillion has been wiped from the total crypto market capitalization, highlighting the intensity of the downturn.
Bitcoin alone has accounted for roughly $800 billion of this outflow within a short period, suggesting that investors are exiting both Bitcoin and altcoins alike.
Until market confidence returns, Bitcoin could continue to record even lower levels on the chart as selling pressure continues to mount.
