The tug of war over the Bitcoin price continues. Large whales have accumulated strongly over recent days, while the US government has won the right in court to sell 69,000 $BTC, forfeited by one individual in the Silk Road case.
Game theory in play
Could the Bitcoin price be relatively flat because the market is waiting to see what will happen with the 69k in seized Silk Road $BTC? It’s not known if the US government will in fact sell this very sizable haul, but what is known is that a court has granted the government the right to sell the 69k $BTC if it should so wish.
The US government is currently the biggest sovereign holder of Bitcoin, with 203,239 $BTC. If the government does decide to sell, it would take it below China in the ranking of countries owning Bitcoin - and with game theory potentially about to become hugely significant, such a move could end up being a massive own goal for the US.
New whales enter and buy rapidly
On the positive side for Bitcoin bulls, it seems that new whales are accumulating $BTC at a rapid pace.
Source: Mr Crypto
The above graphic supplied by “Coinvo”, and taken from the Mr Crypto X account, pictorially shows what is happening. Old whales already bought their Bitcoin stashes a long time ago, while new whales are accumulating now, given that the bull run has the potential to take off again soon.
$BTC respects ascending trend line
Source: TradingView
The short term price chart for $BTC shows that the latest ascending trend line is still being respected. That said, the price is right on this trend line now. If the $BTC price should fall through, the 0.382 Fibonacci level is support below. A deeper correction could take the price down to the 0.618 at around $58,000.
Conversely, a bounce from here could see the $BTC price make an attempt to get above $66,550 and make a higher high. If this were to take place, it would only be a short distance to the top of the bull flag once again.
A bullish $BTC weekly chart
Source: TradingView
The weekly chart for $BTC continues to look bullish. Even though there is a corrective phase taking place right now, it can be seen that last week’s candle wicked down to touch the 0.382 Fibonacci. Therefore, this could have been a local bottom.
At the bottom of the chart, the Relative Strength Index (RSI) remains positive. The indicator line may currently be pointing down, but it could be held up by the mid-point at 50.00, or it could even come back to retest the top of the descending trend line. Either scenario would be bullish.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
