As Bitcoin Sells Off, Block Stock Is Now Trading Below All of Its Key Moving Averages. Should You Buy, Sell, or Hold XYZ Stock Here?

Block (XYZ) shares have come under immense pressure in recent weeks amid a macro-driven selloff in the world’s largest cryptocurrency by market cap, Bitcoin (BTCUSD). 

In fact, the recent weakness has pushed this fintech stock decisively below all of its major moving averages (50-day, 100-day, 200-day), indicating continued bearish momentum ahead. 

At the time of writing, Block stock is trading over 25% below its year-to-date high set in early January.

Technicals Indicate Further Downside in Block Stock

The XYZ share price dropping below its major moving averages is a strong technical warning. 

The aforementioned averages represent short, medium, and long-term momentum. Breaching all three, therefore, suggests a breakdown across every timeframe.

It’s a signal that bullish support has eroded and institutional investors may soon begin lowering exposure. 

Falling beneath these moving averages often accelerates downside pressure as traders typically use these price levels to set stop-losses or trigger sell decisions. 

Why Bitcoin Could Drive XYZ Shares Higher

Block shares’ recent weakness is mostly related to its exposure to Bitcoin, but it’s also what makes it a compelling buying opportunity for long-term investors. 

The financial technology company currently holds more than 8,000 BTC on its balance sheet, and is closely tied to the digital asset through its Cash App as well. 

This positions XYZ stock to benefit rather significantly from a potential crypto rebound, one that, according to Michael Saylor, could push Bitcoin price up to $150,000 by the end of 2025.  

Block raised its guidance for the current quarter to about $2.755 billion in gross profit last week, which makes up for another great reason to own it for the longer term. 

What’s the Consensus Rating on Block?

Wall Street firms recommend buying XYZ shares on the recent pullback as well. 

According to Barchart, the consensus rating on Block stock remains at “Moderate Buy” with the mean target of about $85 indicating potential upside of roughly 30% from here.