US government transfers $590 million worth of BTC, lowering Bitcoin price
On Wednesday, Arkham Intelligence data revealed a US government wallet moved 10,000 BTC, worth $593.5 million, to Coinbase Prime.
Wednesday saw $81.40 million in Bitcoin Spot ETF outflows.
As BTC's daily active addresses decrease, on-chain data suggests a negative swing.
Bitcoin (BTC) falls 1.16% to $58,105 on Thursday. Arkham Intelligence research indicates that a US government wallet moved 10,000 BTC, worth $593.5 million, to Coinbase Prime, lowering sentiment surrounding the primary crypto asset. Bitcoin Spot ETFs lost $81.40 million, ending two days of moderate inflows.
Daily digest: US government transfer hurts Bitcoin
According to Arkham Intelligence, a US government wallet deposited 10,000 BTC, worth $593.5 million, to Coinbase Prime on Wednesday. The US Department of Justice confiscated these Silk Road cash.
Lookonchain data suggests that US government transfers earlier this year dropped Bitcoin's price by 5% within three days. Wednesday's 10,000 BTC transfer, the biggest this year, may cause traders to fear, uncertainty, and doubt, lowering Bitcoin's price.
A known US Government wallet sent 10K BTC to bc1ql two weeks ago. This BTC was deposited to Coinbase Prime deposit wallet 33J. pic.twitter.com/kNLsiJzL95
Technical analysis: BTC rejects $62,000
Bitcoin price failed to break the 61.8% Fibonacci retracement barrier of $62,066 from the swing high of $70,079 on July 29 to the low of $49,101 on August 5. The price is down 1.16% to $58,105 as of Thursday.
BTC may fall 15% to $58,105 and retest its daily support level of $49,917 if $62,066 remains as resistance.
The daily Relative Strength Index (RSI) and Awesome Oscillator (AO) fall below their neutral values of 50 and zero, indicating a bearish trend.
If Bitcoin price closes above the August 2 high of $65,596, it will create a higher daily high, perhaps causing a 6% price rise and challenging weekly resistance at $69,648.
