bitcoin (btc) recently fell to a one-month low of $64,000, causing concern among bullish investors who now fear an imminent selling pressure and a possible retest of lower support levels.
Adding to these concerns, it has come to light that a wallet belonging to the German police has moved $425 million worth of btc to cryptocurrency exchanges, according to on-chain data companies. This development has sparked speculation about the agency's intentions and the possible impact on the market.
Sales pressure concerns
On Wednesday, crypto data analysis company Arkham detected a major cryptocurrency wallet called “German Government (BKS)”, which transfers 6,500 btc, equivalent to $425 million.
The wallet, which held more than 50,000 btc since the end of January 2024, moved the funds to a new address. Part of the transferred btc was sent to popular exchanges Kraken and Bitstamp.
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The recent btc move by the German government agency follows a major bitcoin-most-extensive-action-ever-2024-01-30/” target=”_blank” rel=”nofollow”>seizure of 50,000 btc in January. At the time, it was considered the largest cryptocurrency seizure ever made in Germany.
The German police confiscated most of the btc and the suspects voluntarily transferred them to official wallets provided by the German Federal Criminal Police Office (BKA). Currently, the government wallet contains 43,350 btc with a total value of over $2.8 billion.
crypto Analyst Daan crypto Trades x.com/DaanCrypto/status/1803359854846787925″ target=”_blank” rel=”nofollow”>He suggested that the transfer of btc from the German government wallet to exchanges may have contributed to the emergence of short positions and a slight drop in the price of bitcoin during the trading session on Wednesday. This move raises concerns about potential selling pressure in the market and its impact on bitcoin's price trajectory.
bitcoin faces bearish trend signal
About price action Analysis of the market's largest cryptocurrency, btc, is at a crucial juncture as analysts offer contrasting perspectives.
Technical analyst Alí Martínez x.com/ali_charts/status/1803420971576987844″ target=”_blank” rel=”nofollow”>suggests a possible continuation of the bearish trend as bitcoin's recent breakout of the +0.5σ market value to realized value (MVRV) price band at $67,890 indicates the potential for a correction towards the mid-price band at $54,930 .
Martinez points orNote that when the MVRV is below the 1-year simple moving average (SMA), it often indicates a bearish trend. This analysis suggests that btc may experience further downward pressure on prices due to the strong distribution near the top.
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Unlike Martínez bearish outlookAnother analyst who goes by the pseudonym “crypto Titan” remains bullish on the bitcoin bull market.
The analyst points to the Parabolic SAR indicator and the LMACD (Logarithmic MACD) on the 2-month chart, indicating that the bull market is still intact. x.com/Washigorira/status/1803445687931072797″ target=”_blank” rel=”nofollow”>According For the analyst, these indicators suggest that btc's bullish momentum remains intact.
However, the future direction of bitcoin price remains uncertain, with investors cautiously navigating the changing market conditions.
At the time of writing, btc was trading at $64,850, a drop of over 7% in the last seven days alone, demonstrating the bearish sentiment surrounding the bitcoin market.
Featured image of DALL-E, chart from TradingView.com
