Bitcoin is hovering close to the $62k price level, following another month spent re-testing the $58k lows. The rally from July’s open of $59,800 has been on the side of slow and steady and the price has twice been rejected at this week’s weekly open at $63,300. Volume accompanying the rally has remained on the unremarkable side and that is suggesting that there is nothing like a trend change for now. This is a narrow range that is still on the repetitive side.
This seller was a surprise for everyone
Bitcoin maximalist company, Strategy, which has spent years setting up a real Bitcoin-buying machine for corporate treasury departments, has now dumped Bitcoin in a row for 2 days. As of June 30, it unloaded 1,363 BTC, and the move was later followed up on July 6 with the sale of an additional 2,225 BTC, for a total of 3,588 BTC with an approximate market value of $225.6 million.
Before the month of July, this company had only sold once, which was a token of 32BTC, a rounding error next to a treasury that was over 840,000 coins. The read gets a change where there are two consecutive reductions. It is more of a pattern that is starting rather than a rounding error.
Holdings are 843,775 BTC, and the company is still the largest public Bitcoin company in existence by a significant amount and all of this even with the sale. That sale hardly puts a dent in it; it just hits the belief that it can do nothing but buy (and there has been plenty of opportunity to test this assumption ever since the company began the accumulation in 2020).
What is being depicted by the Bitcoin’s chart
The break below the weekly and daily open, right before the second sale window, stood at nearly $63,319. This area rejected the price twice at the beginning of July, then briefly served as support. Below that there is still the monthly open that is close to $59,800, and this figure is the level that supported the price when there was the largest of the sell-offs in late June. In the 12-day consolidation spanning those levels, price has failed to surpass $63,300 and has also failed to fall below the zone of $59,800.
Momentum is backing the compression read and cannot be termed a directional move. The 7-day EMA is sitting around $62,000, which is under the 200-day EMA near $76,400, which keeps the longer trend down even as the short-term price stabilizes.
Considering the momentum indicators like RSI and MACD, RSI is on the neutral side at 51.6. The MACD histogram is in early positive territory, which signals buyers entering the scene but it wasn’t yet sufficient to signal a trend change.
Fibonacci levels off the $57,748 to $67,248 range place 50 percent retracement at $62,498 and 61.8 percent at $61,377, and both have been surpassed in early week trading without issue. This is just further confirmation of a market making a decision and is not on the trending side.
This can be called a positioning over price scenario
But the thing that is noteworthy is that the company went for the sale. Strategy has been spending years increasing its Bitcoin position, which made a sale during a time when BTC in the $60,000-$62,000 range proved to be more important on its own than transaction value. Furthermore, since they sold at their purchase value for less than approximately $75.5K, this suggests they made the decision to fulfill the liquidity requirements.
If there is some increase in supply this month, the open price at $59,800 will be a critical level to check. But still, even with the $225.6 million sale, the price of Bitcoin saw a drop but that was not that enormous, as the market bulls easily bought the sell supply with not a noticeable down move in price. This is indicating sufficient demand to keep the price at current levels. Now it is a question that is still in place: whether the market would be able to consume one more selling or not.
