Bitcoin’s recent rebound was halted by the ongoing selloff from the German government. On Sunday, the German government transferred 700 BTC to an unidentified address. Despite this, Bitcoin has managed to reclaim significant support at $56,500.

Bitcoin’s potential rebound was halted early Thursday when on-chain trackers detected another large BTC transfer by the German government. According to data from Arkham Intelligence, the government moved 700 BTC, worth about $40.55 million, to an unmarked address (139PoP…H7ybVu) early Sunday morning.

Bitcoin’s Rebound Faces Challenges Amid German Government Transfers

Crypto users suspect that the unmarked address receiving Bitcoin from the German government might be associated with an OTC service or institution. This latest transfer is part of a series of significant daily BTC transfers by the German government that began last week. Many of these transfers have been linked to centralized exchanges, coinciding with a recent crypto crash that resulted in Bitcoin’s most significant pullback since the last halving.

BTCUSD Daily Chart on TradingView

Despite these challenges, Bitcoin staged a notable recovery after last Friday’s price drop. According to TradingView data, Bitcoin formed a classic downtrend rejection candle on the daily chart, indicating a reversal of selling pressure.

After falling to $53,550 on Friday, Bitcoin nearly recovered all its losses by the end of the trading day. The rebound continued into Saturday, with Bitcoin reaching a high of $58,488, signaling a resurgence of bullish sentiment. However, Bitcoin experienced a slight pullback and closed at $58,251.

Bitcoin Faces Continued Battle Between Bulls and Bears

The struggle between bulls and bears continued on Sunday, with early signs of renewed bearish pressure. As of the latest update, Bitcoin is down 1.69% on the daily chart. Despite this, the recent rebound has pushed the price above the significant resistance level of $56,500, which has now turned into support.

Trading above the $56,500 level supports a bullish outlook for Bitcoin. Long-term holders view the recent pullback as an opportunity to accumulate more BTC and strengthen their portfolios. At the time of writing, Bitcoin is trading at $57,783.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.





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