Bitcoin wiped out much of its latest gains thanks to a market reaction to Strategy's 3,600 BTC sell-off, but analysis eyed a potential buy announcement in the coming days.
Bitcoin (BTC) saw flash volatility into Monday’s Wall Street open as markets reacted to tech company Strategy’s new BTC sales.
Data from TradingView showed BTC/USD dropping to near $61,000, sparking daily losses of more than 4%.
BTC/USD four-hour chart. Source: Cointelegraph/TradingView
A rebound at the start of the US session pushed the price higher before settling around the $62,000 mark at the time of writing.
Strategy revealed that it sold 3,588 BTC through July 5 to fund preferred stock dividend payments and replenish cash reserves.
Commenting on the latest BTC price moves, X commentator Exitpump suggested that the Strategy news was the catalyst for an already weakening market.
“Bearish signs were there, posted about it yesterday, news about Saylor selling just triggered more dump,” they wrote.
Exitpump referred to funding rates across exchanges, with a post on Sunday eyeing a buyer entity using a time-weighted average price (TWAP) method to add exposure.
“Once the TWAP buyer backs off, I wouldn't be surprised to see a fast flush lower,” they wrote, anticipating a price ceiling at $64,000.
BTC chart with funding rate data. Source: Exitpump/X
Trader and analyst Rekt Capital appeared unsurprised by the behavior, reiterating similarities between current price action and the latter portion of the 2022 bear market.
Source
This article is syndicated for educational reading. For the latest updates, visit the original publisher.
Read on cointelegraph.com
