The Bitcoin (BTC) market is currently experiencing significant pressure due to large sell-offs from the Mt. Gox exchange and German authorities. Germany is rapidly liquidating its Bitcoin holdings, intending to sell all remaining BTC within two days at the current selling pace, according to analysts.
Recently, 16,038 BTC were transferred from government wallets to various crypto exchanges and market makers, with a total of 26,071 BTC sold since June 19. This leaves only 23,788 BTC in their wallet.
Despite these fundamental challenges, the average cost of Bitcoin mining among the largest public miners in April, approximately $53,000, serves as a crucial support level and an intermediate bottom for the price.
In a July 9 post on TradingView, analyst RLinda provided a detailed breakdown of Bitcoin’s current trends, supported by technical indicators and price movements.
Technical perspective and patterns
From a technical perspective, RLinda has identified a bullish flag pattern forming in the Bitcoin market, indicating a potential upward breakout.
Bitcoin price analysis chart. Source: TradingView/ RLinda
The market is experiencing times of high fear and negative sentiment among the crowd, which, from a psychological point of view, could end in bullish momentum.
The price is currently moving within a range of $58,500 to $53,500, suggesting a period of consolidation. Key resistance levels are identified at $58,500 and $64,000, while support levels are at $53,500 and $53,000.
Key observations and recommendations
The recent growth in trading volumes and price stability around the lower boundary of the flag pattern indicates strong buying interest. Buyers are actively holding back a potential fall, forming a sideways range between $58,500 and $53,500.
A breakout of the $58,500 resistance could trigger bullish momentum, potentially targeting $64,000. Conversely, a breakdown below $53,500 may lead to further declines, testing lower support levels around $50,500-$51,000.
Additionally, the market is eyeing the potential approval of the Ethereum ETF, which could rejuvenate investor sentiment and bring a bullish tone back to the market, indirectly benefiting Bitcoin.
For buyers, it is crucial to monitor the $58,500 resistance level closely. A breakout with strong volume could signal potential buying opportunities targeting $64,000.
On the other hand, sellers should be cautious of the $53,500 support level, as a breakdown below this level may signal further declines, providing opportunities to mitigate losses or short-sell.
Bitcoin price analysis
After dropping to around $54,000 in the last 24 hours, Bitcoin has recovered, trading at $57,190 by press time.
Bitcoin seven-day price chart. Source: Finbold
While the market is fundamentally strained due to large BTC sell-offs by German authorities and the Mt. Gox exchange technical indicators suggest a potential opportunity for Bitcoin.
Despite the challenging fundamentals, RLinda Trading’s technical analysis points to a potential target of $64,000 for Bitcoin if bullish momentum sustains.