The cryptocurrency market is abuzz with speculation as the US government recently took significant action regarding the seizure of bitcoin (btc) linked to the infamous Silk Road dark web market. This development comes at a critical time for bitcoin price, which has struggled to maintain its position above the $70,000 threshold after reaching its current all-time high (ATH) of $73,700 on March 14.
As the largest cryptocurrency experiences another round of price correctionThe movement of these seized funds has triggered intense speculation about a possible liquidation by the United States government.
Silk Road btc seized on the move
According to chain bitcoin/transaction/9c3af4b48e66565f1da1da8278036fa1dbb09f2beaaca99c3504475390ba4590″ target=”_blank” rel=”nofollow”>dataA wallet linked to the US government recently transferred 30,175 bitcoin, seized from the Silk Road dark web marketplace.
This transfer follows the previous seizure of more than 50,000 bitcoin from James Zhong, who illegally obtained the Silk Road cryptocurrency in 2012. The seizure of these funds by the US Department of Justice (DOJ) marked the largest cryptocurrency seizure in its history.
This is not the first case of the US government moving bitcoin obtained from criminal cases. In March 2022, the sold government 9,800 bitcoin, with plans to sell an additional 41,500 btc. However, the recent transfer of 30,175 btc from Silk Road-related addresses has raised questions about the fate of these funds and their possible impact on the bitcoin price correction.
Benjamin Skew, an on-chain data expert, took to social media to offer x.com/benjamin_skew/status/1775202217777115590?s=20″ target=”_blank” rel=”nofollow”>perspectives in the situation. Skew clarified that although there is chaos surrounding the Silk Road bitcoin being sent to Coinbase for sale, closer examination reveals that the primary funds were transferred to a newly created wallet that remains dormant.
However, Skew stated that 2,000 btc of the total amount was transferred to the alleged coinbase wallet for undisclosed purposes, while the rest was sent to a newly created wallet.
200EMA Support Crucial for bitcoin Price
bitcoin price is currently experiencing a lack of bullish momentum as the cryptocurrency continues to face resistance to consolidate above the crucial $70,000 threshold. However, there is still hope on the horizon.
Cryptographic analyst Ali Martínez x.com/ali_charts/status/1775130724133212341?s=20″ target=”_blank” rel=”nofollow”>reflexes the importance of the 200 epimetric moving average (EMA) on the btc 4-hour chart. According to Martínez, this indicator has acted as a formidable support since the beginning of February and continues to play a crucial role in avoiding further downward movements.
The focus on the 200EMA arises from its potential to catalyze a bounce or cause further losses for bitcoin. Martínez stated that if the 200EMA continues to hold as strong support, it means a significant probability of a price bounce. This scenario would provide renewed bullish momentum and potentially push bitcoin price above the $70,000 mark.
However, if the 200EMA is broken, as was the case in mid-January, as seen in the chart below, the analyst suggests this could expose the bitcoin price to further downward pressure and potentially lead to further losses.
bitcoin (btc) is trading at $65,390, continuing its recent price correction. In the last 24 hours, btc has seen a 5% drop; In the last seven days, it has seen a significant drop of more than 6%.
The market is closely monitoring whether the current key support level can support further price declines or whether a possible rebound will occur before reaching that point. The outcome of these scenarios remains uncertain.
Featured image from Shutterstock, chart from TradingView.com
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