- BTC’s price hiked by 2% in the last seven days, despite it remaining under $60k
- Selling pressure remained relatively weak across the cryptocurrency’s market
Investors have been keeping a close eye on the German government for quite some time now, as it has been constantly selling Bitcoin [BTC]. This might not be the case for long though as according to the latest updates, the government has sold off all of its BTC holdings.
Hence, the question – Will this exert more selling pressure on BTC?
Holds ZERO BTC
AMBCrypto had reported previously about the German government selling its BTC holdings in batches. The state’s Criminal Police Office (LKA) confiscated 49,857 BTC from the operator of Movie2k.to in January. Since then, the government has been dumping those BTCs in the market.
Arkham shared a tweet covering the last such dump less than 12 hours ago. According to the same, the German government sent 3846.05 BTC worth $223.81 million to Flow Traders and 139Po. This latest transaction drained all of the BTCs from the government’s holdings. Currently, the German government holds 0 BTC.
Since the sell-off was worth millions, AMBCrypto took a look at whether selling pressure increased on BTC. AMBCrypto’s analysis of CryptoQuant’s data revealed that BTC’s net deposit on exchanges was higher compared to the last seven days’s average, meaning that selling pressure was rising.
However, BTC’s Coinbase premium revealed that buying sentiment was strong among U.S investors. Additionally, its Korea premium was also green. Simply put, Korean retail investors’ buying pressure has been relatively strong.
Source: CryptoQuant
Which way is Bitcoin heading?
Here, it’s worth pointing out that at the time of writing, BTC had finally registered some gains, as insignificant as they may be, after weeks of corrections. It was valued at just under $57,850 on the charts following a minor hike of 2% in over 7 days.
We then took a look at other datasets to better understand whether the crypto would build on this hike or whether the German government’s sell-offs would result in yet another correction.
Our analysis of IntoTheBlock’s data revealed that both the bulls and the bears were competing equally last week. This can be supported by the fact that their number of transactions accounting for 1% of the trading volume remained the same.
Source: IntoTheBlock
On the contrary, Glassnode’s data revealed that BTC is still trading below its possible market bottom. As per the PI Cycle Top indicator, BTC is priced below its market bottom of $65k. If the indicator is to be believed, then it’s viable for BTC to touch $94k in the coming weeks.
Source: Glassnode
Read Bitcoin’s [BTC] Price Prediction 2024-2025
Finally, we checked Bitcoin’s daily chart to better understand whether BTC would continue its uptrend. We found that the MACD flashed a bullish crossover on the charts.
Both its Relative Strength Index (RSI) and Chaikin Money Flow (CMF) noted upticks, underlining the possibility of Bitcoin’s bull rally continuing.