CryptoQuant Warns Strategy to Pause Bitcoin Purchases Amid Cash Reserve Pressure

Written by Ohris M. Greyoon, Blockchain & Crypto Expert

Source: Coinmarketcap

Updated: 1 hour ago

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Cash Reserve Warning: CryptoQuant highlighted that Strategy's annual dividend obligations have surged to approximately $1.2 billion, while its cash reserves have fallen by 38% in 2026, indicating significant pressure on the company's cash flow management and dividend payments.
Declining Dividend Coverage: The dividend coverage ratio for Strategy has dropped from over seven years to about 14 months, with a need for approximately $2.8 billion in cash to restore a 24-month coverage, which is nearly double the current cash holdings, reflecting the fragility of its financial situation.
Adjustment in Bitcoin Purchase Strategy: Ki Young Ju, CEO of CryptoQuant, stated that in the current market environment, Strategy's Bitcoin purchases are no longer a price-driving factor and may act more as a liquidity sink, recommending the company pause purchases and rebuild cash reserves.
STRC Price Volatility: The effective yield of STRC has approached 13.2%, with trading prices dropping to $82.50, indicating that investors are demanding higher compensation for holding the product, which further exacerbates Strategy's funding pressures.

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Technical Analysis for BTC

Technical Sentiment Analysis for Bitcoin (BTC). As of , Bitcoin (BTC) is exhibiting a Sell technical sentiment. Our proprietary analysis, which aggregates 5 technical signals, shows that 1 indicators are flashing buy, while 4 are indicating sell.

Momentum Indicators: RSI, MACD & Overbought/Oversold Status. Currently, the Relative Strength Index (RSI) for BTC stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the crypto.

Support, Resistance & Moving Averages. From a structural perspective, BTC is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.

Bitcoin (BTC) Support & Resistance Level

Name	S3	S2	S1	Pivot Points	R1	R2	R3
Classic	56169.895	59053.947	61524.045	64408.097	66878.195	69762.247	72232.345
Fibonacci	59053.947	61099.233	62362.812	64408.097	66453.383	67716.962	69762.247

About BTC

Bitcoin is a decentralized cryptocurrency originally described in a 2008 whitepaper by a person, or group of people, using the alias Satoshi Nakamoto. It was launched soon after, in January 2009.Bitcoin is a peer-to-peer online currency, meaning that all transactions happen directly between equal, independent network participants, without the need for any intermediary to permit or facilitate them. Bitcoin was created, according to Nakamoto’s own words, to allow “online payments to be sent directly from one party to another without going through a financial institution.”Some concepts for a similar type of a decentralized electronic currency precede BTC, but Bitcoin holds the distinction of being the first-ever cryptocurrency to come into actual use.

About the author

Ohris M. Greyoon

Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.

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