Bitcoin has dropped 2% today, slipping close to $61,000 after the largest corporate holder of Bitcoin Strategy announced its biggest Bitcoin sale since 2020.
The company sold 3,588 BTC worth $216 million, raising concerns among investors. Well-known traders are saying that this is just a short-term dip, a bigger crash is coming.
Bitcoin began to fall when Bitcoin advocate Michael Saylor confirmed in its 8-K filing that it sold Bitcoin in two separate transactions.
Between June 29 and June 30, the company sold 1,363 BTC for $80.8 million at an average price of $59,256. It then sold another 2,225 BTC between July 1 and July 5 for $135.2 million, bringing total sales to 3,588 BTC worth $216 million.
According to the company, the funds will be used to pay quarterly dividends on its STRF, STRE, STRK, and STRD preferred stock.
Despite the sell-off, Strategy remains the world’s largest corporate Bitcoin holder with 843,775 BTC and around $2.55 billion in cash reserves.
This is Strategy’s first major Bitcoin sale after years of continuously buying the asset. Popular crypto analyst Crypto Rover pointed out that the last time Strategy sold 32 BTC worth $2 million, it dropped by 20% in a week.
Now, the company has sold $216 million worth of Bitcoin, over 112 times more than last time.
Meanwhile, Crypto analyst Ali Martinez also noted that Bitcoin has flashed a TD Sequential sell signal at the same time Strategy announced its sale.
“Not exactly the combination bulls want to see.”
Looking at the weekly Bitcoin chart, the last time Strategy sold 32 BTC, Bitcoin fell from $73,700 to below $59K, dropping nearly 20% in that week alone. Following this recent sell-off, Bitcoin has already fallen 2%, from nearly $63K to $61,323, and is now trading just above the important $59,000 support zone.
The price has also moved below its 20-week moving average, showing sellers remain in control. If Bitcoin holds above $59K, it could recover toward $63,600.
However, if that support breaks, the next major downside target sits near $49,000, matching the August 2024 low.
For now, all eyes remain on whether buyers can defend the $59K support, which could decide Bitcoin’s next major move.
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