Bitcoin shows bottom signs amid Govts Selling

The current bearish market volatility has subdued which may point to a possible bottom in the market.

Written by: Olumide Adesina • Friday, June 28, 2024 • 2 min read

• Last updated: Friday, June 28, 2024

Bitcoin ran across resistance close to the $62,000 barrier and dropped 1.5% to trade at $60.4K on Friday’s morning session. The current bearish market volatility has subdued which may point to a possible bottom in the market.

According to data provided by the cryptocurrency analytics company Santiment, during the last two weeks, there has been a noticeable decline in positive comments about Bitcoin on social media sites including X, Reddit, Telegram, 4Chan, and BitcoinTalk.

A bottom indication suggests that the market trend is about to reverse. Often, investors see a bottom as a chance to purchase an asset when it is undervalued or trading at its lowest point. The lowest level of support for the asset is referred to bottom from a technical analysis perspective.

On March 14, Bitcoin reached a new all-time high of $73,780 on Coinbase. The leading cryptocurrency has now fluctuated between $60,000 and $70,000, briefly falling below $60,000 before finding strong support again. At present, the price of BTC is $61,500.

The US Government sent 3,940.28 BTC, or $241.22 million, to Coinbase Prime Deposit on Wednesday, according to data from Arkham Intelligence.

This Bitcoin was forfeited during a trial in January 2024 when it was initially taken from narcotics dealer Banmeet Singh. This sudden shift in money may have contributed to the 1.5% decline in the price of Bitcoin on Wednesday by creating a sense of FUD (Fear, Uncertainty, Doubt) among traders.

The German government moved 750 Bitcoin on Wednesday, worth $46.35 million, according to Lookonchain data. A lesser payment of 0.001 BTC to Flow Traders also raises the possibility of a test transaction or an intention to sell BTC through that organization.

Recent transactions on the blockchain showed German authorities have moved 2,100 BTC, or $135.22 million, to websites including Coinbase, Bitstamp, and Kraken. At present, the German government owns 45,609 Bitcoin, which is worth $2.81 billion.

The Bitcoin Miner to Exchange Flow (Total) indicator, according to CryptoQuant data, indicates the total amount of BTC sent from a mining pool to exchange wallets. A bearish trend is shown by increases in the measure, which show that many miners’ coins are exposed to selling, while a reduction in the metric indicates that just a small number of miners’ coins are exposed to selling, indicating reduced sell pressure.

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ABOUT THE AUTHOR See More

Olumide Adesina

Financial Market Writer

Olumide Adesina is a French-born Nigerian financial writer. He tracks the financial markets with over 15 years of working experience in investment trading.