Explore Companies BySectors & Categories
Explore Companies ByUse Cases
Explore Companies ByProducts & Services
Explore Companies ByRankings & Reviews
Featured NewsCompaniesMarketsCryptoTechRegulatoryCommentaryUKUSWorldMore

    Latest Wires

      Daily Newsletter

      LF Daily News

      Daily industry focused newsletter giving you an overview for the financial & finTech industry.

      See All Newsletters
      By clicking "Sign Up" you are agreeing to our Terms of Service and Privacy Policy

      Bitcoin Tests MicroStrategy’s Average Buy After Rare BTC Sale

      Posted: just now

      Global

      Michael Saylor has long been known as the “Bitcoin Guy” to the public.

      Through public appearances, interviews, and MicroStrategy’s pivot from enterprise software into Bitcoin accumulation, Saylor became one of the loudest corporate Bitcoin bulls in the market. That is why the latest sale caught attention like wildfire.

      On Monday, June 1st, 2026, MicroStrategy sold 32 BTC. The amount was small compared with the company’s total Bitcoin holdings, but holders took it as a sentiment shift from one of Bitcoin’s biggest corporate bulls.

      The sale was also used to help fund preferred-stock distributions, which are payments made to investors who hold MicroStrategy’s preferred shares. In simple terms, Bitcoin was sold as a source of cash to meet an investor-payment obligation.

      This comes while Bitcoin is trading near the $66,384.56 average-buy price of MicroStrategy. If Bitcoin keeps falling, could MicroStrategy eventually need to sell more?

      TA: If Bitcoin Fails Here, We Will See Lower Prices

      Illustration

      Bitcoin tried to move back into the $81,000 to $82,000 region, which marked the previous swing’s value area low, but failed and moved down lower.

      After MicroStrategy’s sale on Monday, the Bitcoin price fell by an additional -6.53% on Tuesday.

      During the Asian session, it has already tapped into the $66,384 average buy price, which can be acting as support for now.

      A value area low of the recent upswing since April to May at $65,211 also suggests there is some form of support at the current price zone. However, BTC price would need to hold here, and ideally break above $75K to signal bullish strength.

      Daily closes above $66,384 to $67,000 would reduce near-term pressure and suggest buyers are still defending the area. Acceptance below $65,211 would keep the bearish continuation case active and increase the chance of a price decline.

      Weekly Chart Points To $57.8K If Support Fails

      Illustration

      The weekly chart gives the next downside area to watch. Bitcoin has broken below the 50% Fibonacci retracement near $70,900. The next major Fib level is the 61.8% retracement, around $57,800.

      That level has additional support confluence. It sits close to the anchored VWAP from the 2022 lows and near the old consolidation area where Bitcoin previously formed a bull flag before pushing higher.

      That consolidation area also carried heavy trading activity, which makes it a logical zone for traders to watch if price moves lower.

      This does not make $57.8k a guaranteed target. It makes it the next clear support cluster if Bitcoin loses the current $65k to $66k area.

      What Happens If Bitcoin Breaches MicroStrategy’s Average Buy?

      History suggests forced selling is not the usual outcome, but it also does not mean the first touch of MicroStrategy’s average buy price is automatically a bottom.

      1) In 2020, Bitcoin briefly fell below MicroStrategy’s early cost basis, and the company bought more.2) In 2022, Bitcoin broke below MicroStrategy’s average buy around May and stayed underwater until roughly April 2023. From an average buy area near $30,700, BTC eventually dropped toward $15,760 in November, almost 49% below that level.

      MicroStrategy still avoided a major liquidation and continued to hold.

      The 2022 comparison is useful because it shows both sides of the current risk. A break below MicroStrategy’s average buy price did not force the company to sell its stack, but it also did not stop Bitcoin from falling further. The market stayed weak for months before price eventually recovered.

      The current setup is more complicated because MicroStrategy has now sold BTC for a funding-related reason.

      i. There was a previous sale in 2022, but that was easier to explain. MicroStrategy sold 704 BTC for tax-loss harvesting, then bought back 810 BTC shortly after. That made the move look more like an accounting decision rather than a change in Bitcoin strategy.ii. The latest sale is harder to dismiss in the same way. MicroStrategy sold 32 BTC to help fund preferred-stock distributions, meaning Bitcoin was used as a source of cash for payments tied to preferred shareholders.

      That does not mean MicroStrategy is about to dump its Bitcoin stack.

      It does mean traders have less reason to assume the company’s BTC treasury is completely off-limits.

      If Bitcoin keeps falling while MSTR’s premium weakens, traders may start questioning whether MicroStrategy can keep funding distributions and future Bitcoin purchases without selling more BTC or issuing equity on worse terms.

      What Traders Should Watch Next

      The first level is $66,384 to $67,000. A reclaim there would ease the immediate pressure and keep the current support test alive.

      The second level is $65,211. Acceptance below that area would keep sellers in control and shift attention toward $57.8k.

      That weekly zone matters because the 61.8% Fib, anchored VWAP from the 2022 lows, and prior high-volume consolidation area are all sitting close together.

      MicroStrategy has handled cost-basis stress before.

      DISCLAIMER: For educational purposes only. Trading comes with substantial risk, leading to possible loss of your capital. Traders are advised to do their own due diligence before investing.

      Image for Bitcoin Tests MicroStrategy’s Average Buy After Rare BTC Sale
      Comments
      Most Recent
      Create Your FREE Account
      Get access to latest news, updates, real-time data, brokerage and trading firm insights and customized information feeds.

      New positioning data shared with LiquidityFinder by trading analytics and risk management platform Tapaas reveals how retail and professional traders across ten countries responded to last week's renewed hostilities between Israel and Iran

      just now

      Klay Group has appointed Rohit Ganguli as Global Head of Wealth Planning. Based in Singapore, he joins from EFG Bank and will lead the firm's global wealth planning function covering succession, governance, tax and cross-border matters for ultra-high-net-worth clients.

      just now

      The dollar is holding firm ahead of today's May CPI print — but one number could change everything. Here's what traders need to watch.

      just now

      amana, a MENA-based neobroker and trading platform, has appointed Nikos Tsoskounoglou as Head of Quantitative Market Making & Research. He joins from EBS and ADSS, bringing expertise in electronic market making, pricing automation, and market microstructure analysis.

      just now

      CME Group has launched Nasdaq CME Crypto Index futures, financially settled contracts tracking the Nasdaq CME Crypto Settlement Price Index, which covers bitcoin, ether, SOL, XRP, ADA, LINK, and other leading cryptocurrencies via a regulated futures marketplace.

      just now

      As the brokerage industry becomes increasingly complex, conversations are shifting from growth alone to operational control, risk visibility, and resilience. IFX Expo International 2026 in Limassol provides a valuable opportunity for industry professionals to exchange ideas and explore the challenges shaping the next phase of brokerage operations.

      just now

      XS.com has appointed Omar Alaa as MENA Marketing Director. Alaa brings experience in digital acquisition, paid media, and regional brand development, and will oversee campaign execution and audience engagement across the Middle East and North Africa.

      just now

      MEXC has launched Combo, a new prediction markets feature enabling users to combine up to 20 event predictions across sports and crypto into a single order. The exchange says it is the first centralised platform to offer multi-event combination trading globally.

      just now

      Swap rates are one of the most frequently mismanaged aspects of MetaTrader platform operations. Set them incorrectly and you expose your brokerage to unnecessary costs, client complaints and compliance risk. This guide explains how swaps are calculated on MT4 and MT5, the most common mistakes brokers make when updating rates, best practices for staying aligned with interbank rates, and how automated swap management tools eliminate the manual workload entirely.

      just now

      Discover the latest AUD/JPY price action analysis. Are we looking at a massive AUD/JPY sell setup? Read my technical breakdown to find out!

      just now
      Feed