Germany adds pressure on Bitcoin Bulls, sells half of its BTC stash

Bitcoin bulls hit by high selling pressure. Blockchain data indicates that the German government removed assets valued at more than $900 million from its Bitcoin holdings, exerting pressure on the cryptocurrency.

According to blockchain data platform Arkham Intelligence, about 16,309 Bitcoin were sent in many batches by Bitcoin wallets thought to be associated with the German government to external addresses, including Bitstamp, Kraken, and Coinbase, the cryptocurrency exchanges.

The German government is halfway through its selling binge with the most recent transfers. Since it began unloading tokens last month, holdings have dropped to 23,788 BTC worth $1.3 billion from 50,000 BTC.

Bitcoin’s value dropped by 3% and as low as $55K shortly after the last batch of blockchain transactions totaling 8,700 BTC. Later on in the day, it rose to slightly over $56K, although it was still down 1.2%. Bitcoin’s price faced resistance on Saturday at the weekly barrier level of $58.3K, which led to a 4% drop the following day. It closed on Sunday below the $56.5Klow from May 1 and trading at roughly $56K

Should the digital asset encounter resistance at its weekly level of $58,375, it may experience a 5% loss, returning to the $52.3K daily support level.
This bearish thesis is supported by the Relative Strength Index (RSI) and the Awesome Oscillator on the daily chart, both below their respective neutral thresholds of 50 and zero.
.Furthermore, if bears are active and the prognosis for the cryptocurrency market is poor, BTC may drop 3.3% more to retest its bottom of $50,521 from February 23.

Following a decline to the lowest price since February last week, some price movement occurred. Market watchers noted that the German and US governments appeared to be selling confiscated assets at a time when the now-defunct cryptocurrency exchange Mt. Gox began to make repayments, indicating a significant supply overhang entering the market during the comparatively calm and low-volume summer season.

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Olumide Adesina
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.
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