Bitcoin (BTC) saw lightning-fast volatility at Monday’s open on Wall Street as markets reacted to modern BTC sales by tech firm Strategy.

Key Points:

• Bitcoin reacts sharply to the news that Strategy has sold almost 3,600 BTC.
• The rebound during the US session did not make up for more than half of the daily losses.
• The analyst suggests that the strategy could reveal offsetting BTC purchases.

Bitcoin erases Christmas profits from strategy sales

Data from TradingView showed that BTC/USD fell to almost $61,000, resulting in daily losses of more than 4%.

BTC/USD four-hour chart. Source: Cointelegraph/TradingView

A rebound early in the US session sent the price higher before hovering around the $62,000 level at the time of writing.

The strategy showed it sold 3588 BTC through July 5 to fund dividend payments on preferred stock and replenish cash reserves.

Commenting on BTC’s latest price movements, commenter X Exitpump suggested that the strategy news was a catalyst for an already weakening market.

“There were bearish signals, it was published yesterday, and the news of Saylor’s sale just caused a bigger crisis,” they say he wrote.

“Finances are still quite positive. I guess that’s it. Short-term rebound from 61.2 thousand, and then a bigger decline after that.”

Exitpump addressed funding rates on exchanges with: fasting on Sunday looking at the buy-side entity using the time-weighted average price (TWAP) method to add exposure.

“When the TWAP buyer pulls out, I wouldn’t be surprised to see a quick color down,” they wrote, expecting a top price of $64,000.

BTC chart with funding rate data. Source: Exitpump/X

Trader and analyst Rekt Capital did not seem surprised by this behavior, highlighting the similarities between the current price action and the second part of the bear market in 2022.

“Overall, Bitcoin is doing exactly the same thing now as it did in the summer of 2022.” – he told X’s supporters.

The attached chart shows a potential 50-month exponential moving average (EMA). becoming the modern resistancejust like four years ago.

BTC/USD monthly chart from 21.50EMA. Source: Rekt Capital/X

Analyst: Strategy May Reveal More BTC Purchases

Others remained confident as trader Jelle looked on bullish divergence on weekly time frames on the BTC/USD relative strength indicator (RSI).

Related: 60.4 thousand Dollars Become ‘Top Area’: Five Things to Know About Bitcoin This Week

“Over the years I have seen the $BTC chart look much worse,” he added he argued.

BTC/USDT weekly chart with RSI data. Source: Jelle/X

How Cointelegraph continues to reportvarious onchain indicators have printed reversal signals that have not been seen since tardy 2022.

Meanwhile, trader and cryptocurrency analyst Michaël van de Poppe suggested that the strategy itself could end in a market rebound.

“Markets are reacting with shock to this news. The value of BTC is falling and the company clearly appreciates the potential impact that Strategy could continue to sell Bitcoin in the future,” he added. he wrote on X

“However, I wouldn’t be surprised to see news in the coming days that they are buying more BTC than they have sold.”