While Bitcoin is struggling to regain momentum after falling towards the $60,000 level, both technical weakness and Strategy’s limited Bitcoin sales are being discussed in the market. Michael Saylor argued that the main reason for the price pressure was not the company’s transaction, but the global capital flow towards artificial intelligence investments.
Michael Saylor’s emphasis on capital rotation
Strategy Chairman Michael Saylor stated in his post on X that the rapidly increasing interest in artificial intelligence infrastructure projects has temporarily attracted investment capital from other areas. According to Saylor, this move causes funds that could go to traditional financial assets and cryptocurrencies to shift to different sectors in the short term.
Michael Saylor stated that the latest pressure in the markets is related to a much broader capital rotation than the sale of Strategy, and that investors are currently turning to new opportunities in the field of artificial intelligence.
In his prominent statements on CNBC, Saylor drew attention to multibillion-dollar investment rounds for companies such as Anthropic and large expenditures on artificial intelligence infrastructure. Saying that liquidity constantly changes between sectors, Saylor cited Bitcoin ETFs and large company transactions as examples of this flow.
Mini dictionary: Capital rotation refers to investors taking their funds out of one asset class or sector and directing them to another area. While this may create weakness in one market in the short term, it may lead to rapid pricing in another area.
Saylor also emphasized that despite the short-term pressure, Bitcoin’s investment thesis has not changed. Describing Bitcoin as a scarce and liquid form of digital capital, Saylor argued that capital shifting to fast-growing sectors could further strengthen Bitcoin’s store of value narrative in the long run.
Strategy’s 32 BTC sale was on the agenda
Another development that attracted the attention of investors was that Strategy sold 32 BTC between May 26 and May 31. This transaction, worth approximately $2.5 million, was recorded as the company’s first Bitcoin sale since 2022.
The average price per transaction stood at $77,135. Per the SEC filing, proceeds from the sale were used to fund dividend obligations related to the company’s preferred stock program. Despite this, Strategy still holds 843,706 BTC and the company remains the world’s largest institutional Bitcoin owner.
The main reason why the sale stood out was the “not selling Bitcoin” approach that Saylor has long advocated. However, a significant portion of market watchers pointed out that the transaction in question corresponded to only approximately 0.0038% of the company’s reserves. Therefore, some analysts viewed this as an operational step rather than a strategic change of direction.
Technical indicators point to a cautious outlook
Bitcoin was trading between $60,600 and $61,000 at the time of writing. While the recent pullback has moved the price below a series of key moving averages, TradingView data showed the outlook remains cautious. The total chart contains 14 sell, 9 neutral and 3 buy signals.
Momentum indicators present a mixed outlook. While the RSI 14 value is around 15, the Stochastic %K is around 11 and the Williams %R is around minus 91. Although this data indicates that the market is approaching the oversold zone, the MACD continues to generate a sell signal at approximately minus 3.922. ADX being close to the 42 level also indicates a strong trend environment.
If the support zone cannot be maintained, eyes may return to 50 thousand levels.
According to independent chart analysis, Bitcoin continues to move within a falling channel defined by lower highs and lower lows. Analyst mohamadvalizibayi stated that a previously positive FTR zone was lost, which indicates that sellers maintain control in the market structure.
Mini dictionary: FTR is an abbreviation for “Failure to Return”. In technical analysis, weakness or strength in the market structure is interpreted through the price’s failure to return to a certain area; It is not evaluated as a definitive signal alone, but together with other indicators.
Support areas in the range of 59 thousand to 61 thousand dollars may pave the way for short-term reaction purchases. On the other hand, if this region cannot be maintained, it is considered possible that the price will experience a new retreat towards the middle and upper part of 50 thousand dollars. On the upside, the range between 62 thousand and 65 thousand dollars is watched as an important resistance zone.
