Bitcoin drops toward $61,000 after Strategy discloses BTC sale

Bitcoin fell sharply into Monday’s U.S. market open after Strategy disclosed a sale of nearly 3,600 BTC, a move that hit sentiment across an already soft crypto market. For retail investors, the reaction shows how closely Bitcoin now trades around corporate treasury decisions, especially when a high-profile holder changes its position.

TradingView data cited by Cointelegraph showed BTC/USD sliding toward $61,000 on July 6, with daily losses topping 4% at one point. Bitcoin later bounced during the U.S. session, but the recovery did not erase most of the decline, leaving the token near $62,000 at the time of Cointelegraph’s report.

Strategy said it sold 3,588 BTC through July 5. According to Cointelegraph, the company used the proceeds to pay preferred stock dividends and add to its cash reserves.

The sale landed at a sensitive moment for Bitcoin. X commentator Exitpump said the market had already been showing signs of weakness before the Strategy news, and that the disclosure helped trigger the next leg lower. Exitpump also pointed to positive funding rates, which are payments between traders in perpetual futures markets. Positive funding often means traders using leverage are leaning long, or betting on higher prices, which can make a pullback sharper if positions unwind.

Exitpump had also said a buyer appeared to be using a time-weighted average price strategy, known as TWAP, to build exposure. TWAP is an order method that spreads trades over time rather than all at once. The commentator had warned that if that buying slowed, Bitcoin could fall quickly, while also identifying $64,000 as a possible short-term cap.

Traders split on the signal

Trader and analyst Rekt Capital said on X that Bitcoin’s current behavior resembles its pattern during summer 2022, late in the prior bear market. According to Cointelegraph, Rekt Capital’s chart focused on the 50-month exponential moving average, or EMA. An EMA is a trend line that gives more weight to recent prices, and traders often watch it as a potential support or resistance level.

In Rekt Capital’s view, that 50-month EMA may now be acting as resistance, similar to the way it did four years ago. Resistance is a price area where sellers tend to show up and slow or stop a rally.

Other market watchers read the setup more constructively. Trader Jelle pointed to bullish divergences on Bitcoin’s weekly relative strength index, or RSI, according to Cointelegraph. RSI is a momentum indicator that compares recent gains and losses. A bullish divergence can appear when price weakens while the indicator improves, a setup some traders read as a sign that selling pressure may be fading.

Cointelegraph also reported that several onchain indicators, which track blockchain activity directly, have recently shown reversal signals last seen in late 2022.

Strategy remains the swing factor

Crypto trader and analyst Michaël van de Poppe said on X that the market appeared to be reacting to the possibility that Strategy could keep selling Bitcoin. He also suggested that the company could later disclose Bitcoin purchases larger than the recent sale, though that remains speculation unless Strategy confirms it.

The key point for investors is that Strategy’s Bitcoin activity is now a market event in its own right. The company’s sale gave traders a concrete reason to reduce risk, while analysts continue to argue over whether the drop marks renewed weakness or another test of levels that have mattered in past cycles.

This story draws on original reporting from Cointelegraph.