BITCOIN PULLS BACK AS STRATEGY BECOMES A SELLER
Markets entered the new week with optimism. After a quiet Independence Day weekend free of major geopolitical headlines, Bitcoin climbed above $63K, while U.S. equity futures pointed to a positive open. Investors appeared ready to build on last week’s recovery. That changed just before the opening bell.
Strategy announced it had sold 3,588 BTC, marking its first major Bitcoin sale since adopting Bitcoin as its corporate treasury reserve. The announcement quickly weighed on sentiment, sending Bitcoin back below $62K.
The timing couldn’t be more important. With markets entering a week that includes the FOMC Minutes, labor market data, and several major crypto ecosystem developments, investors now have another variable to monitor.
The stock has fallen sharply as investors reassess how Strategy may manage its Bitcoin treasury going forward.
MSTR has broken below both its key moving averages and is now testing support around $96-$97. Failure to hold above $94, can take it towards $81.7.
To stabilize, buyers first need to reclaim $98.8, with $104.6 remaining the next major resistance.
LEVERAGE GOT FLUSHED
Strategy’s announcement didn’t just move prices, it triggered a wave of liquidations across the derivatives market. As Bitcoin fell back below $62K, leveraged long positions were forced out.
Over the past 24 hours:
- 67,679 traders were liquidated.
- Total liquidations: $250.2 million.
- Long liquidations: $137.4 million.
- Short liquidations: $112.8 million.
Bitcoin accounted for the largest share of liquidations at $103.3 million, followed by Ethereum with $59.5 million. The data suggests many traders were positioned for further upside after Bitcoin’s move above $63K.
Instead, Strategy’s announcement triggered a sharp unwind, flushing excess leverage from the market. While the immediate reaction was negative, clearing leveraged positions often creates a healthier foundation for the market’s next move.
MARKET POSITIONING REMAINS MIXED
Despite today’s decline, derivatives positioning isn’t one-sided. Over the last 24 hours, taker buy volume totaled $24.2 billion, slightly ahead of $23.0 billion in taker sell volume. However, positioning across exchanges tells a more balanced story.
On Binance, both retail traders and whale accounts remain net long, although Smart Money sentiment continues to lean bearish. On OKX, retail traders remain bullish, but whale accounts are positioned aggressively short, reflecting a far more defensive stance among larger participants. Meanwhile, Bybit continues to show bullish retail positioning, while whale positioning remains largely neutral.
Overall, retail traders continue buying dips while institutional participants remain considerably more cautious.
MARKET SENTIMENT REMAINS CAUTIOUS
Despite Bitcoin trading well above last week’s lows, investor sentiment has yet to fully recover. The Crypto Fear and Greed Index currently stands at 26, keeping the market firmly in the Fear zone.
That’s an improvement from last week’s reading of 17 (Extreme Fear), but investors remain cautious following today’s unexpected selling pressure. For now, fear still dominates positioning despite improving price action over the past several sessions.
BITCOIN GIVES BACK ITS BREAKOUT
BTC entered the week with strong momentum, climbing above $63K before Strategy’s announcement quickly changed sentiment. The unexpected Bitcoin sale triggered broad profit-taking, sending BTC back below $62K
It has now fallen back below its 25-period moving average ($62.9K) and is testing support around $61.9K. The next important support sits near $59.4K. If buyers regain control, Bitcoin first needs to reclaim $62.9K before challenging the recent high near $64K.
Today’s decline doesn’t invalidate the broader recovery, but it shows how sensitive the market remains to institutional headlines.
ETHEREUM REMAINS RANGE-BOUND
ETH has also come under pressure following Strategy’s announcement. Unlike Bitcoin, however, ETH continues trading within a broader consolidation range.
It was rejected from the $1,752 resistance level and has fallen back below its 25-period moving average. The first important support sits around the 50-period moving average near $1,672.
If that level breaks, Ethereum could revisit the next support zone around $1,560. To regain momentum, buyers first need to reclaim $1,752, opening the door toward $1,804. For now, Ethereum remains range-bound until one of these levels gives way.
SOLANA FACES ITS FIRST MAJOR REJECTION
SOL had been one of the stronger large-cap cryptocurrencies over the past week but is now facing resistance. It got rejected from $82.3 and is now testing support around $79.3, with the 50-period moving average near $78 providing additional support.
Holding above this zone would keep the broader recovery intact. However, losing $78 can take it towards $76.2, followed by the major support near $70.3.
HYPERLIQUID PULLS BACK FROM RESISTANCE
Following today’s market-wide weakness, the HYPE is finally seeing a healthy pullback. It was rejected from the $71.8 resistance level and is now testing its 25-period moving average near $69.4.
The 50-period moving average around $66.8 becomes the next major support. If buyers defend this zone, another attempt toward $71.8 becomes increasingly likely.
PYTH CONTINUES TO OUTPERFORM
Not every altcoin is trading lower. PYTH remains one of today’s stronger performers, continuing to attract buyers despite weakness across Bitcoin and Ethereum.
The token has reclaimed both its 25 and 50-period moving averages while holding above $0.040. The next major resistance sits at $0.045. A breakout would target $0.0526, followed by $0.0617.
Strategy’s decision to sell 3,588 BTC reminded us that even the largest corporate Bitcoin holder may occasionally monetize part of its treasury when financial obligations require it.
The resulting selloff flushed excess leverage from the derivatives market and temporarily interrupted Bitcoin’s recent recovery. Whether this turns into nothing more than a short-term shakeout or develops into a deeper correction will largely depend on how buyers respond around the current support levels.
With several macro events still ahead this week, volatility is unlikely to disappear anytime soon.
WHAT TO WATCH THIS WEEK
Although the macro calendar is relatively light, several important catalysts remain.
Macro and Markets
🔴 Wednesday: FOMC Meeting Minutes
🟠 Tuesday: ADP Employment Change
🟢 Thursday: Initial Jobless Claims
Crypto Calendar
- Jupiter launches the private beta of GUM, its new “everything exchange.”
- NEAR hosts “The Big Reveal” livestream on July 7.
- Jito is rumored to launch JTX, a new Solana perpetual futures exchange, later this month.
- Zcash (ZEC) has teased a major announcement expected sometime this week.
The calendar may appear quieter than previous weeks, but with today’s unexpected Strategy announcement already shaking markets, we should expect volatility to remain elevated.
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