- German government transfers $225M worth of BTC to CEX.
- The daily RSI is at 33, indicating selling pressure on Bitcoin.
Bitcoin has been facing severe bearish momentum since mid-June. At the start of this week, it hit an 8-week low of $58,402. Several factors have contributed to the price drop, such as the announcement by the defunct bitcoin exchange Mt. Gox to distribute assets stolen from clients in a 2014 hack starting in the first week of July, after years of moving deadlines.
Another significant factor is the German government’s transfer of a net amount of 3,500 BTC ($225M) to centralized exchanges (CEX) at an average price of $64,364 in the past 7 days, which has drawn wider attention.
SpotOnChain revealed that 18 hours ago, the German Government moved out an additional 900 BTC ($54.76M), with 400 BTC ($24.34M) going to Coinbase and Kraken. Now, they have 46,359 BTC ($2.88B) left. This coincides with a 6% dip in BTC over the past week.
Notably, yesterday, the German Government transferred out 2,000 BTC, of which 1,100 BTC ($72.4M) was deposited to CEX, including 500 BTC ($32.6M) to Kraken, 500 BTC ($32.6M) to Bitstamp, 40 BTC ($2.61M) to Gemini, 40 BTC ($2.61M) to BitFlyer, and 30 BTC ($1.96M) to Coinbase.
Meanwhile, it is also worth mentioning that the German Government seized 49,857 BTC (then worth $2.14B) from the pirated movie website Movie2k operator on January 16, 2024.
What This Suggests for BTC?
The daily RSI is at 33, indicating significant selling pressure. The German government’s movements further worsen this pressure. Meanwhile, analysts suggest that TD Sequential presents a buy signal on the Bitcoin daily chart, predicting a rebound of one to four daily candlesticks for BTC.
For Bitcoin bulls, sustaining momentum is crucial. The next significant milestone lies at the $63,144 mark, with $65,135 also in sight if the upward trend continues. Conversely, if the bears worsen the scenario, the price may drop to $58,514.
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