Bitcoin Price News: BTC Eyes $60K Retest as Saylor’s Auction Triggers Dump

Bitcoin (BTC) has dropped by 11% in the past 7 days as Michael Saylor’s Strategy dumped 32 tokens in a recent auction.

This was the first time that Saylor’s digital asset treasury (DATs) sold some of its BTC stash since 2022. Back then, the move also coincided with a sustained decline in the top crypto’s price as interest rates were rising and FTX had just collapsed.

Interestingly, Saylor’s company sold 704 BTC back and repurchased 810 tokens just a few days later, taking advantage of a short-term decline that may have been partially caused by its actions.

Instead of signaling weakening conviction, Strategy’s dump could be a calculated move to trigger a price decline to lower its cost basis. Market sentiment is at a point when even good news is bad news, as geopolitical tensions in the Middle East persist.

In addition, inflation in the United States is nearly doubling the Federal Reserve’s target rate, and nobody expects a rate cut in the near term.

This hawkish attitude reduces the market’s willingness to take on additional risk, and Strategy could capitalize on that.

Weekly Buy Signal Anticipates Retest of Bitcoin’s Cycle Low at $60,000

As we discussed in a recent Bitcoin price prediction, we expected a drop to $65,000 if Bitcoin lost its trend line support. This is exactly what happened this week, while we also envision a much stronger drop to $60,000 to retest the cycle’s low.

This blueprint is in line with a bullish view for the top crypto for the long term. We think that’s also what Strategy could be looking at right now.

Bitcoin’s weekly chart flashed a buy signal a few weeks ago when the Relative Strength Index (RSI) in this higher time frame dropped below 30.

This signal features a 66% win ratio and has delivered strong gains in the past. The price has dipped below its cycle low only once in the last three instances.

Hence, we see the $60K demand zone as the most likely cycle low for the token, although it is also possible that it could drop to $55,000 or lower before resuming its rally.

The macroeconomic landscape seems to be what’s weighing the most on BTC’s recent performance. In contrast, adoption is at its peak, as the United States is about to embrace cryptocurrencies in an unprecedented way with the passing of the Clarity Act.

Oversold RSI Anticipates Technical Bounce at $65,000

Heading to the daily chart, we can see that BTC broke below its trend line support on Monday and consolidated that breakout today.

Losing this key line means that the market’s attitude has shifted. However, we are approaching oversold levels in the RSI, which means that we could expect a technical bounce soon.

We see the path from $65,000 to $60,000 as an attractive area for late entries to BTC’s upcoming bull market. This could be the token’s last big dump before the cycle shifts.

In the near term, we envision a recovery to $85,000, followed by a much stronger move to $100,000. Meanwhile, our long-term target for the token is $200,000, based on its performance after previous weekly buy signals like the ones we discussed earlier.