Bitcoin price slips below 59,000 dollars! What are investors watching after the surprise sale?

Michael Saylor highlights global capital rotation

Strategy’s Chairman of the Board, Michael Saylor, took to X to emphasize that the recent surge in interest in artificial intelligence infrastructure projects is temporarily pulling investment capital away from other sectors. According to Saylor, this shift is diverting funds, which might otherwise flow into traditional financial assets and cryptocurrencies, into new and fast-growing industries.

Michael Saylor stated that the latest pressures on the market are connected to a much broader capital rotation rather than Strategy’s recent Bitcoin sale, with investors now seeking new opportunities in artificial intelligence.

Making headlines on CNBC, Saylor pointed to billion-dollar fundraising rounds for AI firms like Anthropic and significant spending on AI infrastructure. He explained that liquidity is constantly shifting between industries, citing Bitcoin ETFs and large corporate transactions as examples of these flows.

Mini glossary: Capital rotation refers to investors moving their funds from one asset class or sector into another. This process can cause short-term weakness in one market while fuelling rapid gains elsewhere.

Despite short-term pressures, Saylor stressed that the fundamental investment thesis for Bitcoin remains unchanged. He described Bitcoin as a scarce and liquid form of digital capital, adding that the capital now flowing into rapidly expanding sectors could, over the long run, further strengthen Bitcoin’s value proposition as a store of wealth.

Strategy’s 32 BTC sale draws attention

Another development catching investor interest was Strategy’s sale of 32 BTC between May 26 and May 31. Worth roughly 2.5 million dollars, this transaction marks the company’s first recorded Bitcoin sale since 2022.

The average sale price per Bitcoin was 77,135 dollars. According to SEC filings, proceeds from the sale helped fund dividend obligations linked to the company’s preferred stock program. Despite this, Strategy still holds 843,706 BTC, maintaining its status as the world’s largest institutional holder of Bitcoin.

The main reason this sale stood out was Saylor’s long-held “never sell Bitcoin” stance. Yet several market observers noted that the sale only represented about 0.0038 percent of the company’s reserves. As a result, some analysts viewed it as an operational move rather than a strategic shift in the company’s Bitcoin policy.

Cautious signals from technical indicators

At publication time, Bitcoin hovered between 60,600 and 61,000 dollars. The recent downturn pushed the price below several key moving averages, and TradingView data showed the overall outlook remains cautious, with 14 sell signals, 9 neutral, and only 3 buy signals across indicators.

Momentum indicators also painted a mixed picture. The RSI 14 sits near 15, the Stochastic %K at 11, and the Williams %R around minus 91, all suggesting the market is approaching oversold territory. However, MACD remains negative at around minus 3,922, signaling continued selling pressure, while the ADX is close to 42, indicating the presence of a strong trend.

If support fails, could Bitcoin revisit the 50,000 range?

Independent chart analysts note that Bitcoin continues to trade within a descending channel, defined by lower highs and lower lows. Analyst mohamadvalizibayi pointed out that the failure to reclaim a previously bullish FTR zone implies sellers remain in control of the market structure.

Mini glossary: FTR stands for “Failure to Return.” In technical analysis, it highlights a market’s inability to revisit a specific price zone, signaling weakness or strength depending on context. It is not a standalone trend signal and should be used in tandem with other indicators.

Support in the 59,000 to 61,000 dollar range could trigger short-lived rebounds. However, if these levels do not hold, a further decline toward the mid or upper 50,000s remains possible. To the upside, the 62,000 to 65,000 dollar range is viewed as a major resistance zone by analysts.