Strategy’s BTC holdings could be at risk following Technical expert Tony Severino’s revelation about Bitcoin’s current price action.

The expert noted that the flagship crypto’s 200-day MA is below the average cost of the company’s BTC holdings, meaning they could still hold an unrealized loss at some point.

Technical expert Tony Severino has revealed that Strategy's BTC holdings could be at risk following the revelation that the 200-day MA is below the average cost of the company's BTC holdings.

Every Bitcoin bear market touched the 200-week Moving Average, according to the expert. He further stated that the 200-week MA is currently at $47,000.

"This is about a 30% discount to the average cost basis of about $69k on Strategy's 258k BTC, and it's only $5k below the most recent lows set in April," Severino added.

According to him, if BTC were to make a lower low or move into a bear market, then the company would likely soon be underwater on its Bitcoin holdings.

Strategy's Stock At Risk With Bitcoin's 200-Day MA Below $50,000

Following its latest purchase of 13,390 Bitcoins, Strategy now holds 568,840 BTC, which it bought for $39 billion at an average price of $69,287, well above the 200-week MA at $47,000.

The company's stock price has dropped by 76% since March 2022, while its Bitcoin holdings have declined by 60% from their peak in January 2023.

Earlier, CryptoQuant CEO Ki Young Ju revealed that the only way Strategy's Bitcoin plan could lead to bankruptcy was if the BTC price dropped to as low as $16,000.

According to Ju, this price decline was almost impossible, which is why he is confident that Saylor's company won't have to liquidate its holdings anytime soon.

However, experts like renowned economist Peter Schiff have remained critical of Strategy's non-stop Bitcoin purchase. In his latest criticism, Schiff noted that the company's next buy would likely put its cost average above the $70,000 mark.

"Isn't good considering how much they have borrowed to buy BTC. Paper losses could become real losses," the economist added.

BTC Still Has More Legs To The Upside

Crypto analyst Titan of Crypto has indicated that Bitcoin has more legs to the upside in this market cycle, which is a positive for Strategy's BTC holdings.

In an X post, the analyst noted that despite BTC being near its all-time high (ATH), the monthly LMACD hasn't crossed bearish yet. He added that the crossover has marked the top in every past cycle.

As such, Bitcoin's 200-Week MA could also rise as the BTC price approaches a top in this market cycle.

Crypto analyst CrediBULL recently predicted that the flagship crypto could still rally to as high as $150,000 or even $200,000 in this bull run. Standard Chartered has also stated that $200,000 by year-end is achievable.

At the time of writing, the Bitcoin price is trading at around $102,000, down in the last 24 hours, according to data from CoinMarketCap.