Bitcoin Faces Mounting Selling Pressure as Key Support Zone Cracks
Crypto analyst Ali Martinez is warning of potential trouble for Bitcoin due to converging selling pressure from multiple sources. Over the past ten days, miners have sold 1,648 BTC worth approximately $106 million after a recent price increase toward $64,600.
ETFs also added to the pressure with net outflows of 6,195 BTC, roughly $398 million leaving the spot Bitcoin ETF market in just one week. Additionally, Strategy, led by Michael Saylor, has sold 3,338 BTC over the past few weeks, worth more than $214 million, to fund dividend payments on its preferred securities.
This simultaneous supply event is being absorbed under difficult conditions, with a total of $1.59 billion in potential sell-side liquidity sitting on exchanges where it can be easily sold. Meanwhile, US demand is not stepping in to absorb this excess supply, as the Coinbase Premium Index has remained negative since May 8 and currently sits near -0.0743.
A critical support zone between $63,111 and $61,849 is being eyed by Martinez as a potential floor for Bitcoin. If this zone holds, he believes the price may resume its advance. However, if it breaks, the next major downside target could sit near $54,276, which would represent a significant extension of the current drawdown.