The world’s largest corporate holder of bitcoin made the headlines earlier today by making its second BTC sale in just a few months.

Aside from the immediate effect on the asset’s price, it also coincided with a popular technical tool turning bearish and suggesting another move lower soon.

The Significance of This Sale

It was just over a month ago when Strategy announced its first sale in four years. It was a rather small one of just 32 BTC – nothing compared to its 840,000+ fortune. However, the first week after the news went live painted a very clear picture: the company’s moves, being the largest corporate holder of the biggest cryptocurrency, could have a major impact on the perception and performance of the underlying asset.

BTC nosedived from $74,000 at the time of the sale’s announcement to under $60,000 in less than a week. Yes, there were other factors at the time, but Strategy’s move was widely considered arguably the most significant. And that was a sale of just 32 BTC.

Earlier today, the firm’s co-founder and former CEO, Michael Saylor, highlighted another bitcoin distribution. This time, it was substantially bigger as Strategy disposed of 3,588 BTC worth $216 million. It said the sale was to fund dividends on its Digital Credit securities, which was aligned with the previous week’s announcement about the creation of the Digital Credit Capital Framework.

There was an immediate impact on bitcoin’s price as the asset, which had already retraced from $64,000 to $63,000, dipped below $61,500, where it found some support. However, there could be more pain ahead, at least according to one popular metric.

TD Sequential Says Sell

Ali Martinez was quick to flag that the TD Sequential, a metric used to determine the underlying asset’s market exhaustion in either direction, had flashed a sell signal amid Strategy’s announcement.

He believes the combination of these two factors is not something the “bulls want to see,” as they open the door for a more profound correction. Given the June developments and subsequent crash for BTC after the 32-unit sale, it’s safe to assume there’s merit to his prediction.

Source: CryptoPotato