The crypto market saw a revival on Tuesday evening, with Bitcoin (BTC) inching past $59,000 as fears after last week’s drawdown triggered by concerns over potential selling by Germany’s government faded.
Bitcoin Showing “First Signs Of Stability”
On Tuesday, Bitcoin surged over 4%, reaching as high as $59,322 before retracing slightly. The asset is changing hands at $58,705 at the time of writing, CoinGecko data shows.
There is optimism amid this state of affairs, particularly after last week’s unprecedented crash that drove BTC below the $54K level. One trader thinks Bitcoin is showing its first signs of stability.
In an X post, trader Rekt Capital observed that BTC is nearing its previous “June downtrend” line, and this resistance will be tested if a bullish divergence scenario plays out. The crypto analyst also shared a chart that includes relative strength index (RSI) data, which, on daily timeframes, was hinting at bullish divergence with price.
#BTC Bitcoin is showcasing some initial signs of stability after the crashAnd in doing so, it is creeping closer to the Downtrend (light blue)This Downtrend will be challenged if the Bullish Divergence plays out$BTC #Crypto #Bitcoin https://t.co/2TrYTkvb4H pic.twitter.com/vv98DSufPQ
— Rekt Capital (@rektcapital) July 9, 2024
Looking at the weekly chart, Rekt Capital stressed the importance of Bitcoin closing above $60,600 to regain strong upside momentum. “On this recent rally, BTC has a chance to reclaim $60600 as support to confirm last week’s extensive downside as a fake breakdown. Crucial days ahead,” the trader stated.
Bitcoin Price Unfazed As German Government Sell-Off Continues
The recent negative performance of Bitcoin and other cryptocurrencies is tied to the German state of Saxony dumping confiscated assets and the ongoing distribution of Mt. Gox repayments. The now-defunct exchange Mt. Gox has started reimbursing roughly $9 billion to creditors after 10 years.
The German authorities transferred $900 million worth of BTC on Monday. That was followed by an additional $362 million worth of Bitcoin being moved to Kraken and crypto trading desks on Tuesday. The German BKA has apparently transferred out over 5,853 BTC so far Wednesday.
To date, Germany has sold around two-thirds of its seized Bitcoin stockpile with roughly $1.06 billion remaining, data from blockchain analytics firm Arkham Intelligence shows.
Meanwhile, only a few miners remain profitable at current prices, creating a scenario that could indicate a “local bottom” for the flagship cryptocurrency.