Bitcoin Overcomes $60,000 Resistance Following German $3 Billion Sell-Off, What Next For BTC?

Key Takeaways

• The German government sold 50,000 Bitcoin, causing a price drop.
• The Mt. Gox repayment plan could add market pressure.
• However, Bitcoin could be about to start a bullish phase.

On July 12, the German government finalized the sale of its remaining 3,846 Bitcoin, worth about $62,604 per BTC. Arkham Intelligence  said these transactions were directed to “Flow Traders and 139Po”. These were, most likely, institutional deposit and over-the-counter services. 

Since then, Bitcoin has climbed past the $60,000 resistance level, and investors are wondering whether it can continue to rise.

Over three weeks in late June and early July, the German government has sold 50,000 Bitcoin, primarily from asset seizures. This contributed to Bitcoin’s price drop to $54,000 on July 5, which BTC has since recovered from by nearly 18%. 

Mt. Gox Sell-Off Worries

Despite Germany’s exit from its Bitcoin holdings, the upcoming $9 billion Mt. Gox reimbursement plan could put further pressure on the market. The collapse of the exchange in 2014, when Bitcoin was worth just three figures, has long caused market anxiety.

Willy Chuang, COO of the WOO X crypto exchange, said  Mt. Gox’s move to transfer 47,228 BTC marked the beginning of the repayment process, causing some market concerns about a large potential sell-off. 

He also said the long-term impact might be less severe than expected as the market gradually absorbs the selling pressure. Some customers may have to wait up to 90 days for their payouts. However, former Mt. Gox CEO Mark Karpeles reportedly confirmed that would be the worst-case scenario. 

Karpeles said processing times could vary based on each exchange’s internal policies. Exchanges approved by the trustee to handle repayments include Bitbank, BitGo, Bitstamp, Kraken, and SBI VC Trade.

BTC Price Analysis

After reaching nearly $74,000 in March, Bitcoin entered a descending channel and broke out on May 17. By May 21, it reached $71,800 but fell back to $67,000 on May 31. 

On June 7, Bitcoin reencountered resistance at $71,800 and fell, hitting a low of $53,400 on July 5. This continued its downward trend from its all-time high, creating a lower low than the initial drop, which ended at around $57,000 on May 1.

Since the July low, Bitcoin has recovered by nearly 20%, reaching $63,470 on July 15, closer to confirming a bullish outlook. There is further upside potential, with Bitcoin’s next target at $66,000, where the 0.382 Fibonacci level is. 

If this higher high happens, BTC could form its first lower-degree five-wave impulse, signaling the onset of its next major bull phase. Considering it would still be at a lower high than on June 7, it would need to hit a higher low, preferably above $57,800, on the expected downturn to maintain a bullish outlook. 

If this happens, there should be another, larger rise that could take the Bitcoin price above $80,000, smashing its previous all-time high.