- Bitcoin briefly fell toward $61,000 after Strategy disclosed the sale of 3,588 BTC.
- Analysts remain divided, with some expecting further downside while others see signs of a potential reversal.
- Technical indicators and on-chain data continue to suggest Bitcoin could be approaching an important turning point.
Bitcoin came under renewed selling pressure after Strategy revealed it had sold 3,588 BTC, sending the world’s largest cryptocurrency close to the $61,000 level. The decline pushed daily losses above 4% before buyers stepped back into the market, allowing Bitcoin to recover toward the $62,000 mark during the U.S. trading session.
The announcement added to an already fragile market environment, with many traders pointing to weakening momentum before the news broke. While the sale rattled investor confidence in the short term, opinions remain divided over where Bitcoin could head next.
Strategy Sale Triggers Fresh Selling Pressure
Strategy disclosed that it sold 3,588 Bitcoin to fund preferred stock dividend payments and replenish its cash reserves. The announcement immediately fueled concerns that additional corporate sales could place further pressure on Bitcoin’s price.
Crypto commentator Exitpump argued that bearish signals had already been developing before the announcement, suggesting the Strategy news simply accelerated an existing downtrend. The analyst also noted that funding rates across exchanges remained relatively elevated, indicating traders were still leaning bullish despite weakening price action.
According to the analyst, Bitcoin could see a short-term bounce near the $61,200 level before another leg lower if buying interest fades.
Analysts Compare Current Market to 2022
Market analyst Rekt Capital believes Bitcoin’s recent behavior closely resembles the latter stages of the 2022 bear market. According to the analyst, Bitcoin is following a remarkably similar technical pattern, with the 50-month exponential moving average once again acting as major resistance.
While the comparison does not guarantee the same outcome, it suggests Bitcoin may still need additional consolidation before establishing a stronger long-term recovery.
Some Traders Still See Bullish Signals
Not everyone is turning bearish. Trader Jelle pointed to bullish divergences developing on Bitcoin’s weekly Relative Strength Index (RSI), arguing that the current chart remains healthier than many previous corrections experienced over the years.
At the same time, several on-chain indicators have begun flashing reversal signals that have not appeared since late 2022. Those metrics have encouraged some investors to believe Bitcoin may be approaching a longer-term bottom despite the recent weakness.
Could Strategy Become Bullish Again?
Crypto analyst Michaël van de Poppe believes the market may be overreacting to Strategy’s latest Bitcoin sale. While investors are currently pricing in the possibility of additional corporate selling, he noted that Strategy has historically been one of Bitcoin’s largest buyers.
If the company resumes accumulating Bitcoin after strengthening its balance sheet, renewed purchases could quickly improve market sentiment and provide fresh support for Bitcoin’s price.
For now, traders remain focused on whether Bitcoin can hold above key support levels near $61,000. A sustained recovery above recent resistance could shift momentum back in favor of the bulls, while another break lower may invite additional selling pressure in the days ahead.
