The German government has recently started selling a large amount of Bitcoin from a confiscated wallet, which has contributed to the ongoing price decline in the cryptocurrency market. This selling spree is part of an overall trend of increased selling activity by long-term Bitcoin whales, leading to a significant market correction and preventing Bitcoin from surpassing $70,000 and reaching its previous all-time high.
According to blockchain analysis platform Arkham, the German government has begun the process of selling Bitcoin on various cryptocurrency exchanges. On a recent morning trading session, $65 million worth of BTC was transferred to two exchange deposits, including Coinbase. Earlier, the German government moved $600 million worth of BTC, with $130 million sent to exchanges like Kraken and Bitstamp. Despite these sales, the German government still holds a significant amount of Bitcoin, valued at $3.05 billion.
The seizure of 50,000 Bitcoins worth $2.17 billion by the German police in late January marked the start of this selling spree. The suspects voluntarily transferred the BTC to official wallets provided by the Federal Criminal Police Office (BKA). Additionally, recent on-chain data suggests that long-term BTC whales have sold $1.2 billion worth of Bitcoin in the past two weeks, further contributing to the market downturn.
In terms of Bitcoin price analysis, technical analyst Mags has provided insights into the current price action. Mags presents two scenarios for the market’s future direction:
1. Reclaiming the mid-range: Despite a recent pump that briefly pushed the price above $66,000, Bitcoin has retraced to $64,860, indicating a bearish retest on the daily chart.
2. Retesting the range low: Bitcoin could potentially test the support level near $60,500, which could lead to a breakout above the previous range high, indicating a bullish trend continuation.
Regardless of the scenario, Mags maintains a bullish outlook on Bitcoin’s long-term price trajectory. The overall higher time frame structure remains positive, indicating potential growth in the future.
Ronaldo, an experienced crypto enthusiast, emphasizes the importance of technical analysis in understanding market trends and making informed investment decisions. He believes that studying price movements and utilizing analytical tools can unlock hidden opportunities in the crypto market. Ronaldo’s dedication to sharing his insights and knowledge with others reflects his commitment to empowering individuals to navigate the complexities of the crypto industry and seize opportunities for growth and development.
In conclusion, the ongoing selling spree by the German government and long-term Bitcoin whales has contributed to the market downturn, preventing Bitcoin from reaching its previous all-time high. Despite the current price volatility, experts like Ronaldo remain optimistic about the long-term potential of cryptocurrencies and encourage investors to conduct thorough research before making any investment decisions.