Bitcoin Price News: BTC Drops Below $60K as Saylor’s Strategy Revisits Approach

Bitcoin (BTC) has dropped below $60,000 in the past 24 hours after a long-time supporter of the top crypto, Michael Saylor, introduced a new capital management framework for its firm, Strategy.

After years of assuming a long-only approach to its BTC-focused investment, Saylor’s company is now introducing an active management style to its portfolio that aims to address investors’ concerns about persistent market volatility.

Strategy outlined several new approaches to managing their dividend distribution, debt portfolio, and other similar aspects of the business.

“Digital Credit requires liquidity, discipline, and active capital management. This framework is designed to strengthen credit quality and enable the Company to reduce expected preferred stock dividend payments when accretive,” Saylor highlighted in a press release published yesterday.

Active Management Approach Questions Uber-Bullish Bitcoin Thesis

This shift in Saylor’s way of managing Strategy’s assets sends an interesting message that resonates within the crypto community and even die-hard Bitcoiners — volatility is here to stay, and downside risks persist.

It coincides with a change in macroeconomic conditions, as now the Federal Reserve is expected to increase rates this year rather than cut them, as the market expected at the beginning of 2026.

Meanwhile, Bitcoin ETFs reflect a deterioration in sentiment in the past couple of weeks ahead of Saylor’s decision. During the first two days of this week, investors have withdrawn $231 million from these vehicles.

Combined with the $1.8 billion in outflows recorded last week, this sets the stage for a sustained downtrend that could push BTC to $50K easily in the next few days.

BTC Retests Buy Signal’s Previous Low

As we have shared multiple times in previous Bitcoin price prediction articles, we are tracking the evolution of a long-dated buy signal in the weekly chart that has yielded impressive results in the past.

The price action is currently retesting the signal’s previous low, which has happened in previous instances. In 66% of the cases, the price has rallied off this level and onto a new all-time high months later.

However, in one out of three instances, the price has dipped below this mark to make a lower low. In any case, we maintain our view that BTC could be either near or at its cycle bottom.

Key Support Breakout Creates Attractive Opportunity to Short BTC

Heading to the daily chart, we have already seen BTC break below a key support and make a new lower low. This confirms a negative outlook at a point when macroeconomic conditions are bearish as well.

In addition, the Relative Strength Index (RSI) sent a sell signal upon dropping below the 30 mark again.

A short position at $60,000 offers an attractive risk-reward ratio of 3.5x if the target is set at $50K and the stop price is right above the closest daily resistance.

Hence, for traders who expect that BTC will continue to drop, the current level appears to be an attractive entry price after a confirmed support breakout.