Key Points
- Bitcoin’s price showed signs of recovery, increasing by over 3% in the last 24 hours.
- The German government transferred BTC worth millions, potentially impacting Bitcoin’s price action.
Bitcoin’s value has demonstrated a recovery trend, with a more than 3% increase in the last day after weeks of decline. The cryptocurrency’s price managed to surpass $57k, signaling a potential upward trend.
However, Bitcoin’s price surge was accompanied by significant sales from major players, including the German government, which could potentially impact its market performance.
Bitcoin’s Market Performance
According to CoinMarketCap, Bitcoin’s price had fallen by over 9% in the past week. However, the last 24 hours brought a glimmer of hope as Bitcoin’s value rose by over 3%, sparking optimism for a further price rise.
At the time of writing, Bitcoin was trading at $57,290.27, boasting a market capitalization exceeding $1.129 trillion. Despite the bullish momentum, some top players in the crypto space decided to sell their holdings.
A recent tweet from Lookonchain revealed that the German government transferred 9,634 BTC, equivalent to over $551 million, to various platforms including Kraken, FlowTraders, Coinbase, Bitstamp, Cumberland, and B2C2Group.
Potential Impact on Bitcoin’s Price
The German government’s transfer, combined with a substantial deposit by a whale to Binance, could increase selling pressure and potentially halt Bitcoin’s recent bull rally.
Data from CryptoQuant indicated a decrease in Bitcoin’s Exchange Reserve, suggesting weak selling pressure. However, the net deposit on exchanges was high compared to the last seven-day average, implying rising selling pressure.
Despite some bearish signs, other metrics appeared bullish. For instance, Bitcoin’s aSORP indicated more investors were selling at a loss, which in a bear market can signal a market bottom. Additionally, the Binary CDD was green, indicating that long-term holders’ movements in the last seven days were lower than average.
The technical indicator Chaikin Money Flow (CMF) registered an uptick, suggesting a continued price rise. However, the Money Flow Index (MFI) appeared bearish as it moved downwards. This, along with the latest transfer from the German government, might put an end to Bitcoin’s bull rally.
