Although the price of Bitcoin is still below $60,000, it has risen by 2% in the past 7 days. The selling pressure in the overall cryptocurrency market remains relatively weak. However, investors have been closely watching the German government as it continues to sell Bitcoin (BTC). The latest news shows that the German government has sold all of its BTC holdings. Will this put more selling pressure on BTC?
Holds zero BTC
Previously, AMBCrypto reported that the German government was selling its Bitcoin holdings in batches. The German Criminal Police Office (LKA) seized 49,857 BTC from the operators of Movie2k.to in January and has been dumping them on the market since then. Less than 12 hours ago, Arkham reported the latest dump on Twitter. According to the tweet, the German government sent 3846.05 BTC worth $223.81 million to Flow Traders and 139Po. This latest transaction depleted all the BTC held by the government, and the German government currently holds 0 BTC.
AMBCrypto looked at whether BTC's selling pressure has increased due to this multi-million dollar sell-off. According to an analysis of CryptoQuant data, BTC's net deposits on exchanges are higher compared to the average over the past seven days, indicating that selling pressure is rising. However, BTC's premium on Coinbase shows that buying sentiment among U.S. investors remains strong. In addition, the Korean premium is also green, indicating that buying pressure from Korean retail investors is relatively strong.
Where is Bitcoin going?
It is worth pointing out that after weeks of correction, Bitcoin has finally made some gains, albeit marginal ones. After a small increase of 2% in 7 days, its value on the chart is just below $57,850.
To get a better idea of whether the cryptocurrency will build on this rally or see a pullback due to the German government’s sell-off, we looked at other data sets. According to IntoTheBlock, the competition between longs and shorts was evenly matched last week. The number of trades, which account for 1% of the volume, remained unchanged, indicating stable market sentiment.
On the contrary, data from Glassnode shows that Bitcoin is still trading below its possible market bottom. According to the PI Cycle Top indicator, the Bitcoin price is below its market bottom of $65,000. If the indicator is credible, it is feasible for Bitcoin to hit $94,000 in the coming weeks. If you are still on the sidelines and cannot see the market trend clearly, you will only fall due to bullishness and rise due to bearishness. Free ➕👗 ➕🌍 BTC7732
Finally, we looked at Bitcoin’s daily chart to get a better idea of whether BTC will continue its uptrend. We found that the MACD has made a bullish crossover on the chart. Both its Relative Strength Index (RSI) and Chaikin Money Flow (CMF) have turned up, highlighting the possibility of a continuation of Bitcoin’s bull rally.
