Bitcoin Rejected at $60,000, Drops 4% – What’s Next as Germany Dumps Over 10,000 BTC
Germany is selling Bitcoin with increasing pace, causing the price to fall from its $60,000 level. Will the price get lower?
Key Takeaways
- Bitcoin rebounded 12% from below $54,000.
- German government sold 10,627 BTC and now holds under 5,000 BTC.
- Bitcoin must surpass $60,000 to avoid a bearish trend
Bitcoin’s’s price has recovered nearly 12% since its crash on July 5, when it dipped below $54,000 for the first time in months. Now, the reigning crypto king is gathering momentum to break past the key resistance level of $60,000.
Over the past business week, Bitcoin has struggled to maintain above $57,000, its previous macro low, despite multiple attempts to break resistance. With Germany only left with a small portion of its seized Bitcoin stash and the sell-off pressure easing, could this be the catalyst for another bullish rally?
Germany Leading The Sell-off?
The German government is rapidly liquidating its Bitcoin holdings, reducing its reserve to below 5,000 BTC. This sell-off is part of an effort to dispose of Bitcoin seized during criminal investigations, notably from Movie2k.
Recent transactions involved moving over 5,000 BTC, worth $286 million, to platforms such as Flow Traders, Coinbase, Kraken, and Bitstamp. Data from Arkham Intelligence indicates that the authorities sold over 10,627 BTC, valued at $615 million, leaving them with just 4,925 BTC.
Bitcoin exchange reserves have seen a notable uptick over the past week, indicating that a lot of assets are leaving the platform to be sold or stored.
BTC Price Analysis
Since peaking at nearly $74,000, Bitcoin has entered a descending channel. On May 17, it climbed to $71,800 only to fall under $67,000 by the end of the month; the reigning crypto king has struggled to reclaim that level since.
In early June, Bitcoin attempted to break past the $71,000 mark but was rejected, leading to a downward spiral that saw BTC hit $53,400 by July 5 and create another lower low after its initial low of $57,000 on May 1.
Bitcoin now faces two possible scenarios: If it turns the channel’s resistance into support, it could trigger a rally toward $78,000. Alternatively, it could signal a bearish trend if it falls back into the descending channel. At press time, Bitcoin’s daily RSI stood at 40. On July 5, it had fallen to 28, indicating that a recovery cold would be underway.
Zooming into the 4-hour chart, Bitcoin has created a higher low. If a new five-wave impulse to the upside starts, the first target is $63,100. However, if it fails to break past $60,000 and turn downward, it could break below the descending support, with the next potential stop around $44,000.
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