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The German government has now sold off all of its Bitcoin holdings. In a very short period of time, it has gone from almost 50,000 BTC to zero. Bitcoin has absorbed the shock and continues to recover. The $BTC price is currently at $58,700.
It's all gone!
According to Arkham Intelligence, the German government sent 49,860 BTC to exchanges (valued at $2.9 billion) and sold them over a three-week period. After sending the last bitcoin, the government wallet received 0.0000321 BTC, or $1.87, from an unknown benefactor.
Bitcoin Recovery Continues
As this particular overhang for Bitcoin comes to an end, the $BTC price continues to recover, up 9.8% since the local bottom 9 days ago. The fact that almost 50,000 BTC could be absorbed in this manner from a single seller proves the demand for BTC that must be present in the market.
Bitcoin's Return Journey
Source: TradingView
On a short time frame of 4 hours, the $BTC price seems to be trying to break the downward sloping trend line. If the price can confirm the breakout, the first resistance level of $58,500 will be next.
The bulls will then try to break the resistance levels of $60,000 and $61,400, after which, if all goes well, the price could potentially rise to the upper level of $71,400.
Two meaningful indicators
Source: TradingView
Zooming right into the weekly macro time frame, we can see the importance of resistance. Also, the second indicator from the bottom of the chart, the Relative Strength Index (RSI), shows a tick up touching the midpoint of this indicator. Bull markets are usually characterized by being above this 50 level, so it is very important to move back up and hold this level.
The most meaningful and perhaps most powerful indicator, especially on the weekly timeframe, is the Stochastic RSI at the bottom of the chart. The blue fast line crossing over the orange slow line should continue. If both lines can cross above the 25 level, the resulting positive price momentum could push $BTC back to the top of the range and beyond.
Disclaimer: This article is provided for informational purposes only. It is not provided or intended to be legal, tax, investment, financial or other advice.
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