Breaking: Strategy sells Bitcoin for first time since 2022

• Bitcoin falls sharply below $72,000 on Monday as Strategy reports a sale of 32 BTC.
• Strategy disclosed that 32 BTC were sold between May 26 and May 31 for approximately $2.5 million.
• The sale will likely fund the distribution of the upcoming stock dividends, the company said.

Bitcoin (BTC) is trading below $72,000 at press time on Monday, as Strategy’s 8-K filing reveals that 32 BTC were sold in late May for approximately $2.5 million, which could fund the preferred stock dividends on June 30. 

Strategy’s first-ever Bitcoin sale in four years

Michael Saylor’s Strategy, formerly known as MicroStrategy, reported its first-ever sale of 32 BTC last week, following the sale of 704 BTC in December 2022 for tax-loss harvesting, which were bought back within two days. However, the recent sale is likely to fund the preferred stock dividend on June 30. 

The 8-K report further reveals that Strategy continues to hold 843,706 BTC as of Sunday, acquired at a total cost of $63.87 billion. This reflects an average purchase price of $75,699 per BTC, which puts Strategy underwater.

Bitcoin takes a nosedive

Bitcoin drops below $72,000 at press time on Monday, driven by Strategy's sell-off news. BTC maintains a bearish near-term tone, holding below the 50- and 100-day Exponential Moving Averages (EMAs) clustered around $76,052 and $76,505, while the 200-day EMA near $81,086 remains well overhead as a broader cap.

Momentum remains fragile, with the Relative Strength Index (RSI) at 31 on the daily chart, hovering just above oversold territory, while the Moving Average Convergence Divergence (MACD) indicator is entrenched in negative territory, which together hint that downside pressure persists even as selling may be becoming stretched.

On the downside, immediate support aligns with the rising trendline around $71,329, which now acts as a nearby floor to monitor for a deeper slide.

On the topside, any rebound faces initial resistance at the 50-day EMA near $76,052, followed by the 100-day EMA around $76,506, while a more decisive recovery would require a break above the 200-day EMA at approximately $81,087 to ease the broader bearish bias.

(The technical analysis of this story was written with the help of an AI tool.)