The German government recent sale of its entire Bitcoin (BTC) holdings, totaling 3,846 BTC, has significantly reduced the supply overhang and could potentially propel Bitcoin’s price upwards. German govt concludes 23-day Bitcoin sale, potentially easing market pressure.
This strategic move, executed over 23 days, involved transferring the seized BTC, originally acquired during the closure of the piracy platform Movie2k, to addresses linked to Flow Traders and an over-the-counter (OTC) service.
Analysts attribute the recent crypto market pullback, which saw BTC prices decline from the $63,000 range to the $54,000 level over the past two weeks, to the German government’s selling activity, intended to settle payments to Mt. Gox creditors.
German Government BTC Sale Completion to Ease Market
Technical analysts, including Rekt Capital, predict that BTC must close above the $58,350 level for the day and subsequently achieve a weekly close above $60,600 to confirm an upward trend.
Furthermore, Bitcoin is currently nearing the downtrend line that has been suppressing its price for the past six weeks, presenting an opportunity for a breakout. While previous attempts to break through this resistance have been unsuccessful, the latest effort marks the fourth attempt this month, suggesting a potential shift in momentum.
Altcoin Sherpa, another prominent trader, anticipates a bounce at the current price level, potentially leading to a rally back towards the $63,000 mark. This optimistic outlook stems from the recent reduction in supply overhang, creating a more favorable environment for price growth.
Whales Add 71,000 BTC to their Holdings During the Dip
Bitcoin whales aggressively accumulated 71,000 BTC, valued at $3.9 billion, during the recent market downturn. This strategic accumulation coincided with Bitcoin prices dipping below $54,000.
Simultaneously, Bitcoin ETFs witnessed substantial inflows, attracting $300 million in new investments on Monday – the highest single-day influx since early June.
A significant portion of Mt. Gox’s crypto was transferred to new wallets, pushing BTC prices down to $53,600. Administrators are under pressure to complete the distribution process by October.
Furthermore, the German government’s sale of over 80% of its BTC holdings amplified the sell-off. Despite these market pressures, large holders, identified by IntoTheBlock as those controlling over 0.1% of the circulating supply, capitalized on the dip as a buying opportunity.
