Bitcoin Drops 3.8% Below $70,000 as Strategy Sells First BTC Since 2022

Bitcoin fell 3.8% in 24 hours to $69,482 on June 02, dipping below the $70,000 level as Strategy disclosed its first bitcoin sale since 2022. The company sold 32 coins for $2.5 million to fund preferred stock dividends. Middle East tensions and risk-averse trading also weighed on the market. For investors, this signals potential weakness ahead as major holders reduce positions.

Strategy’s First Sale Breaks Long Holding Pattern

Strategy sold 32 bitcoin at an average price of $77,135, raising $2.5 million for dividend payments. The sale marks the company’s first bitcoin liquidation in five years despite holding over 843,000 coins. Executive Chairman Michael Saylor had previously pledged to “never sell” bitcoin, making this move notable for market sentiment. Analysts viewed the sale as a sign that even the largest corporate bitcoin holder faces funding pressures.

Broader Market Pressure From Geopolitical Risk

Iran halted diplomatic talks with the United States on June 02, raising concerns about regional conflict and energy supply disruptions. Oil prices held near $94.40 per barrel as traders priced in higher energy costs. This risk-off environment reduced appetite for speculative assets like bitcoin. The Crypto Fear and Greed Index fell to 23, indicating extreme fear. Ether dropped below $2,000 at $1,996, while Solana fell 1.17% to $79.66.

Technical Weakness Signals Deeper Decline Ahead

Bitcoin’s Relative Strength Index (RSI) hit 34.44, showing oversold conditions. The Stochastic indicator at 9.23 suggests extreme weakness. Analysts identified the next support level at $66,000 near March and April lows. Meyka rates BTCUSD C+ with a yearly price target of $97,868, implying 42.6% upside from current levels. However, technical indicators point to near-term pressure before any recovery.

Analyst Outlook: Spring Rally Proved a Fakeout

Experts identified Bitcoin’s 16-week spring rally in early 2026 as a classic fakeout preceding decline. The cryptocurrency failed to hold gains above key moving averages. Analysts predict the true bottom arrives around October to November 2026, following a 4-year cycle pattern. Bitcoin peaked at $126,000 in October 2025 and has since fallen 41% from that high.

Final Thoughts

Bitcoin’s drop below $70,000 reflects both tactical selling by major holders and broader market risk aversion. With Meyka rating BTCUSD C+ and technical indicators deeply oversold, the near-term path remains uncertain. Investors should watch the $66,000 support level closely.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.