German Government’s Bitcoin Dump Surpasses $195M As Selling Spree Persists
21 June 2024 - 9:00AM
NEWSBTC
The German government has recently begun selling millions of
dollars worth of Bitcoin (BTC) from a confiscated wallet, further
contributing to the lack of catalysts for a price recovery in the
cryptocurrency market. The move comes as increased selling
activity and unprecedented selling by long-term BTC whales have led
to a sharp price correction, preventing Bitcoin from consolidating
above $70,000 and retesting its previous all-time high. Whales And
German Government Fuel Market Volatility According to blockchain
analysis platform Arkham, the German government has initiated the
process of selling Bitcoin on cryptocurrency exchanges. During
Thursday’s morning trading session, $65 million worth of BTC was
sent to two likely exchange deposits, including Coinbase.
NewsBTC reported on Wednesday that the German Government moved $600
million worth of BTC, with $130 million sent to four likely
exchange deposits, including Kraken and Bitstamp. Arkham’s records
indicate that the German Government still holds $3.05 billion worth
of BTC. Related Reading: Cardano And XRP Shorting Activity Could
Act As ‘Rocket Fuel’ For A Rally; Santiment In late January, the
German police seized the country’s largest cryptocurrency,
confiscating 50,000 Bitcoin worth $2.17 billion. The seizure
occurred after the suspects voluntarily transferred the BTC to
official wallets provided by the Federal Criminal Police Office
(BKA). Moreover, recent on-chain data reveals that long-term BTC
whales have sold a substantial $1.2 billion worth of Bitcoin over
the past two weeks, further exacerbating the market downturn.
Bitcoin Price Analysis In a recent social media post, technical
analyst Mags, provided an insightful analysis of Bitcoin’s current
price action, suggesting a potential mid-range breakdown. Mags
highlights two possible scenarios for the market’s future
direction: Scenario 1: Reclaim the mid-range: According to
Mags, the recent pump on Thursday, which temporarily pushed the
price above $66,000, has been completely retraced as BTC trades at
$64,860, indicating a bearish retest on the daily chart.
Scenario 2: Retesting the range low: Mags highlight an important
support level near the range low of $60,500. This level holds
significance in determining the potential future trajectory of
BTC’s price. Bitcoin reclaims the mid-range level in this
scenario, leading to a potential run back towards the range high.
According to Mags’ analysis, if this scenario plays out, it may
result in a breakout above the previous range high, suggesting a
bullish trend continuation. Related Reading: 87% Of Bitcoin Hodlers
Laughing All The Way To The Bank – Here’s Why Alternatively, BTC
may retest the range low before moving higher. If this scenario
unfolds, it could lead to a prolonged period of sideways movement,
potentially prolonging the consolidation phase. However, even
in this scenario, Mags maintains a bullish outlook as the overall
higher time frame structure remains positive. Featured image from
Shutterstock, chart from TradingView.com
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