As a seasoned crypto investor with a few years under my belt, I’ve seen my fair share of market volatility and government actions affecting cryptocurrencies. The news that the German government has sold all of its Bitcoin holdings came as a surprise, but it’s not something that will deter me from my long-term investment strategy.
The German government has recently disposed of all its Bitcoins, reducing their stash from approximately 50,000 coins to none in a brief period. Bitcoin has managed to weather this shock and is currently on the mend. At present, the Bitcoin price hovers around $58,700.
It’s all gone!
Based on Arkham Intelligence’s report, the German government transferred 49,860 Bitcoins, equivalent to around $2.9 billion, to cryptocurrency exchanges over a span of three weeks. Following the sale of its entire Bitcoin holdings, an insignificant amount of 0.0000321 BTC, or approximately $1.87, was received in the government wallet from an unidentified source.
Bitcoin recovery continues
After completing the recent sell-off of Bitcoin, which saw a drop of over 9%, the cryptocurrency’s price has been bouncing back with a 9.8% increase since hitting its local low nine days ago. The substantial amount of around 50,000 BTC sold by a single entity underscores the strong demand for Bitcoin that currently exists in the market.
Bitcoin’s journey back
Within the compact 4-hour window, Bitcoin’s ($BTC) price seems poised for an attempt to surpass its descending trendline. Should this effort succeed, the initial resistance awaits at $58,500.
As a researcher studying the bullish trend in Bitcoin’s price movement, I would identify two significant resistance levels for potential price breaks: $60,000 and $61,400. If these resistances are successfully breached, the price could potentially rise to reach the upper end of the range at $71,400.
Two telling indicators
From a broad perspective of a weekly timeframe, it’s worth acknowledging the significance of resistance levels. Additionally, the relative strength index (RSI), which is displayed as the second indicator at the bottom of the chart, has shown a slight uptick that reaches the middle point of this indicator. Typically, bull markets are distinguished by being above the 50 level on the RSI. Thus, regaining and maintaining this level will be crucial.
As a crypto investor, I strongly believe that the stochastic RSI, located at the bottom of the chart, is the most significant and potent indicator, especially when considering weekly time frames. The blue fast line needs to sustainably cross above the orange slow line for this bullish signal to continue. If both lines manage to surpass the 25 level, the resulting positive price momentum could potentially propel Bitcoin ($BTC) back to the top of its price range and even beyond.
Read More
Sorry. No data so far.
2024-07-13 14:24