The Bitcoin (BTC) recovery continues – can the German government still tank the price?

by

As a researcher with extensive experience in the cryptocurrency market, I find the German government’s relentless selling of Bitcoin intriguing, especially given the current bullish trend. The latest sale of 5103 BTC, worth around $300 million, has once again put pressure on the price, but surprisingly, it seems to be holding firm above the recent local low of $53,400.

The German authorities’ persistent selling of Bitcoin has not deterred the cryptocurrency market thus far, as the $BTC value remains relatively stable. However, with such substantial selling pressure, it raises the question: Will Bitcoin bulls be able to handle the entire sell-off, or is another significant price drop imminent?

$BTC price remains buoyant

As an analyst at Arkham Intelligence, I can tell you that the German government transferred another 5103 Bitcoins, equivalent to approximately $300 million, to cryptocurrency exchanges on Wednesday morning. Currently, their Bitcoin holdings stand at around 18,860 coins, valued at over $1.11 billion.

Despite the heavy selling, Bitcoin’s price remains surprisingly resilient, leaving those in charge of the transactions to ponder what significant factor could cause it to dip below its latest low of $53,400.

Why is the German government selling?

In a bull market, one could wonder why the German government is disposing of its Bitcoin at supposedly low prices instead of cashing in on higher values for the benefit of its taxpayers?

Is it possible that the significant German holdings in Bitcoin are being employed in an attempt to push down its price below the critical support level of $51,000, thereby triggering an early bear market? However, if this is their strategy, it seems unlikely to succeed. In such a case, Germany might be relinquishing its position as a major player in the Bitcoin sovereign race.

The recovery is taking shape

As a researcher studying the cryptocurrency market in the past 4 hours, I’ve noticed a downward trend in the $BTC price. However, after hitting a local minimum at $53,400, there has been a rally with the price forming a higher low and creating a bullish W pattern. These patterns typically emerge near the end of downtrends.

One potential way to rephrase this statement in clear and conversational language is: “The previous resistance level of $58,000 could be transforming into a support level. This shift might also signify the confirmation of a breakout from the W-shaped pattern we’ve been tracking. Based on the typical progression of such patterns, we could expect the price to reach around $62,500.”

If the pattern is disrupted with a definitive drop below the neckline, Bitcoin’s price might reverse direction and fall beneath the support trend line once more. This could result in another downtrend for Bitcoin.

$BTC set to battle through resistance levels

In terms of significant support and resistance points for Bitcoin, its current trend appears more promising. Achieving a foothold above $58,000 could be instrumental in driving up the price further. Subsequent milestones include $60,000, $61,500, $63,000, and $64,000. Overcoming these levels would signal a bullish continuation for Bitcoin.

Reaching a value above $64,000 could pave the way for further progress towards $67,000 and ultimately, the peak at $71,400. With over a year left in its bull market, Bitcoin’s potential should not be underestimated. Despite facing resistance around $64,000, Bitcoin may be initiating a reversal, turning previous resistance into new support levels.

Read More

2024-07-10 14:02