Bitcoin is unaffected by the German government’s latest round of on-chain transactions, but BTC price resistance trendline remains out of reach.
Bitcoin was back around $58,000 when Wall Street opened on July 9 as the German government shifted more of its Bitcoin holdings.
Bitcoin price remains unaffected as German government continues to take action
Data from Cointelegraph Markets Pro and TradingView show that Bitcoin price momentum is strong, reaching a daily high of $58,102 on Bitstamp.
The exchange was one of several involved in a recent round of transactions from the German government’s wallet. Both inbound and outbound Bitcoin transactions occurred that day, with the latter involving around 3,000 Bitcoins as of this writing.
The day before, another point of contention emerged in the current market: the currency of the defunct exchange Mt.Gox was also transferred to the chain.
“The Bitcoin market is still heavily influenced by psychological warfare,” Ki Young Ju, CEO and founder of on-chain analytics platform CryptoQuant, noted in an article for X.
"Government BTC sales are minuscule compared to overall liquidity, and most Mt. Gox BTC holdings have not yet been transferred to creditors. CT still blames the drop on government sales. Smart money is replacing dumb money. We are too early."
Trading firm QCP Capital has seen an increase in “speculative” trading activity in its latest bulletin to Telegram channel subscribers.
“Despite weak liquidity, both BTC and ETH hit new highs this week with heavy buying on dips,” the report observed.
“The market’s strong reaction to supply changes suggests speculative selling pressure rather than actual physical demand. This could indicate that the market is overly betting on the downside.”
BTC/USD is up 1.5% on the day, which is starting to make some market observers mildly optimistic.
One of the prominent traders and analysts, Rekt Capital, told X followers: “Bitcoin is showing some initial signs of stabilization after the crash.”
Rekt Capital created a chart showing that the downtrend line needs to be broken for a full recovery to occur. It includes relative strength index (RSI) data, which on the daily timeframe is signaling a bullish divergence in price.
He added: “This downside move will be challenged if a bullish divergence materializes.”
BTC/USD chart with RSI data. Source: Rekt Capital/X
Another chart shows that prices have regained support around $56,750, in line with the lows seen in early May.
BTC/USD chart. Source: Rekt Capital/X
Bitcoin Analyst Sees Need for ‘Catalyst’
Keith Alan, co-founder of trading resource Material Indicators, was similarly cautious.
He said BTC/USD still lacks the momentum to recover levels lost in recent weeks, including the 200-day moving average (MA) at $58,822.
“This new trend prediction signal on the Bitcoin daily signal indicates that it is unlikely that the price will go below yesterday’s candlestick today,” Material Indicators’ X account said in one of its proprietary trading tools.
“A drop to $543k would invalidate the price for me. It’s trading slightly higher right now but I think we need a catalyst or a lot of BTC buying liquidity to reclaim the 200-day moving average.”
