Bitcoin fell 2% today to nearly $61,000 after Bitcoin Strategy’s largest corporate holder announced the biggest Bitcoin sale since 2020.
The company sold 3,588 units $BTC The value has reached $216 million, raising concerns among investors. Prominent traders say this is just a short-term decline and a bigger crash is to come.
Strategy to sell $216 million worth of Bitcoin
Bitcoin began to fall when Bitcoin advocate Michael Saylor admitted in an 8-K filing that he had sold Bitcoin in two separate transactions.
From June 29th to June 30th, the company sold 1,363 units. $BTC $80.8 million with an average price of $59,256. Since then, 2,225 more have been sold. $BTC Sold for $135.2 million from July 1st to July 5th, with total sales reaching 3,588 $BTC Worth $216 million.
The company said the funds will be used to pay quarterly dividends on STRF, STRE, STRK and STRD preferred stock.
Despite the decline, Strategy remains the world’s largest corporate Bitcoin holder with 843,775 Bitcoins. $BTC and cash reserves of approximately $2.55 billion.
Traders predict an even bigger crash in the future
This is Strategy’s first major Bitcoin sale after years of continually purchasing assets. Popular cryptocurrency analyst Crypto Rover pointed out that Strategy last sold at $32. $BTC It was worth $2 million, but it dropped 20% in one week.
To date, the company has sold $216 million worth of Bitcoin, more than 112 times the previous amount.
Meanwhile, cryptocurrency analyst Ali Martinez also pointed out that Bitcoin issued a sell signal for TD Sequential at the same time as Strategy’s sale announcement.
“This is not the combination that the bulls want.”
Bitcoin traders should keep an eye on the $49,000 level
Looking at the weekly Bitcoin chart, Strategy last sold 32 $BTCBitcoin fell from $73,700 to less than $59,000, a drop of nearly 20% in that week alone. Following this recent decline, Bitcoin has already fallen 2% from near $63,000 to $61,323, and is currently trading just above the important $59,000 support zone.
The price is also below its 20-week moving average, indicating that sellers are still in control. If Bitcoin sustains above $59,000, it could recover towards $63,600.
However, if this support breaks, the next major downside target would be around $49,000, which would be comparable to the August 2024 low.
For now, all eyes are on whether buyers can defend the support at $59,000, which could determine Bitcoin’s next big move.
