Bitcoin climbed about 2.66% to roughly $75,800 after Strategy announced a $2.54 billion acquisition of 34,164 BTC — the company’s third-largest buy, equivalent to about 2.5 months of new Bitcoin issuance. But several factors suggest the rally may be short-lived.
Strategy financed roughly 86% of the purchase through its Stretch (STRC) preferred stock, which produced about $2.17 billion from at-the-market sales between April 13 and April 19. Sales of Class A common stock (MSTR) contributed about $366 million. STRC is designed to let Strategy raise cash for Bitcoin purchases when it trades at or above its $100 par value; in 2026 STRC supported roughly 77,000 BTC of buys — about ten times the amount acquired by all ETFs combined, according to market data.
Since April 15, STRC has been trading below $100, a development that could limit Strategy’s ability to continue raising funds and adding BTC this week. Historically, pauses in Strategy’s accumulation have correlated with BTC downturns: on average, Bitcoin has dropped about 30% when STRC dips under $100 — a decline from current levels that would push BTC toward roughly $53,000.
The risk backdrop is also weakening. U.S. stock indexes have pulled back amid uncertainty over whether a U.S.–Iran truce will be extended; recent political comments suggesting the truce may lapse raise the risk of renewed Middle East conflict, which typically hurts risk assets including Bitcoin.
On the technical side, BTC’s price action has formed a classic flag consolidation, with price drifting toward the pattern’s lower trend line. If that support gives way, a pullback into the $67,000–$69,000 area in April is a reasonable short-term target. Downside pressure may be limited, however, while the 20-day and 50-day EMAs provide dynamic support; maintaining those averages would signal ongoing demand and increase the odds of a rebound.
Conversely, a decisive break above the flag’s upper trend line would negate the bearish pattern and could open a path back toward the 200-day EMA near $82,750. In the near term, clearing resistance around $78,000 remains the bulls’ priority.
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