Key Points
- The German government has transferred 1,000 BTC to crypto exchanges and unmarked wallets amidst a bearish market.
- Bitcoin’s technical analysis shows a potential fall to the $52,800 support level.
The German government has once again made a significant transfer of 1,000 Bitcoin (BTC) amidst a bearish cryptocurrency market.
At press time, Bitcoin was exhibiting a bearish trend, moving below the 200-day EMA, with a possible fall to the $52,800 level.
Major Cryptocurrencies Experience Price Drop
The cryptocurrency market has seen a downturn with major assets including Bitcoin, Ethereum (ETH), and Solana experiencing a price drop of over 2.5%, 2.7%, and 4.5%, respectively.
In the midst of this market downturn, the German government transferred a notable 1,000 BTC worth $55.8 million, according to data from blockchain intelligence firm Arkham.
German Government Transfers Bitcoin
Arkham reports that out of the 1,000 BTC transferred by the German Government, 500 BTC was sent to cryptocurrency exchanges including Bitstamp and Coinbase, valued at $27.9 million.
The remaining 500 BTC, also worth $27.9 million, was transferred to an unmarked wallet address “139PoP.” Since June 19th, the government has transferred significant BTC to different exchanges and the same wallet address.
This continuous transfer of BTC by the German government has negatively impacted the cryptocurrency market. Since June 19th, BTC has fallen by more than 15%, dropping from the $65,200 level to the $55,700 level.
Bitcoin Technical Analysis
Bitcoin’s on-chain analysis indicates a bearish trend as it broke down major support levels of $58,000 and formed a strong bearish candle below it.
In addition to this breakdown, BTC was moving below the 200 Exponential Moving Average (EMA) on a daily time frame, signalling bearishness. This suggests a high possibility of BTC falling to the $52,800 support level.
Despite the bearish signals, the Relative Strength Index (RSI) was in oversold territory, suggesting potential for a recovery.
Short Liquidation Higher
Despite the fall, bulls have liquidated only $46.97 million of long positions whereas short sellers have liquidated over $86 million of short positions, according to on-chain analytic firm Coinglass.
This higher number of short liquidations indicates that bulls are still present in the market. However, the Open Interest (OI) dropped by 4.3%, signalling fear among market participants.
As of this writing, BTC was trading near the $56,000 level, having experienced a price drop of over 2.5% in the last 24 hours. Over the last seven days, BTC has dropped by 10% and over the last 30 days, BTC has lost over 18% of its value.
