Bitcoin
German government agency sends $425 million in BTC to exchanges – TradingView News
Bitcoin (BTC) recently fell to a one-month low of $64,000, causing concern among bullish investors who now fear imminent selling pressure and a potential retest of lower support levels.
Adding to these concerns, a wallet belonging to German police was discovered to have moved $425 million worth of BTC to cryptocurrency exchanges, according to on-chain data firms. This development has sparked speculation about the agency’s intentions and potential impact on the market.
Concerns about selling pressure
On Wednesday, crypto data analysis firm Arkham detected a significant cryptocurrency wallet called “German Government (BKS)” transferring 6,500 BTC, equivalent to $425 million.
The wallet, which held over 50,000 BTC as of the end of January 2024, transferred the funds to a new address. Some of the transferred BTC was sent to popular exchanges Kraken and Bitstamp.
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The recent movement of BTC by the German government agency follows a significant seizure of 50,000 BTC in January. At the time, it was considered the largest seizure of cryptocurrencies ever carried out in Germany.
Most of the BTCs were seized by German police, with the suspects voluntarily transferring them to official wallets provided by the German Federal Criminal Police Office (BKA). Currently, the government wallet contains 43,350 BTC with a total value of over $2.8 billion.
Crypto analyst Daan Crypto Trades suggested that the transfer of BTC from the German government’s wallet to exchanges may have contributed to the emergence of short positions and a slight drop in the price of Bitcoin during Wednesday’s trading session. This movement raises concerns about potential selling pressure in the market and its impact on Bitcoin’s price trajectory.
Bitcoin Faces Downtrend Signal
When it comes to analyzing the price action of the largest cryptocurrency on the market, BTC is at a crucial juncture as analysts offer contrasting perspectives.
Technical analyst Ali Martinez suggests a possible continuation of the downtrend as Bitcoin’s recent breach of the +0.5σ market value to realized value (MVRV) price range at $67,890 indicates the potential for a correction towards the mid-price range at $54,930.
Martinez points out that when the MVRV is below the 1-year simple moving average (SMA), it often signals a downtrend. This analysis suggests that BTC may experience further downward price pressure due to the strong distribution near the top.
In contrast to Martinez’s pessimistic outlook, another analyst who goes by the pseudonym “Titan of Crypto” remains bullish on the Bitcoin bull market.
The analyst points to the Parabolic SAR indicator and the LMACD (Logarithmic MACD) on the 2-month chart, indicating that the bull market is still intact. According to the analyst, these indicators suggest that BTC’s upward momentum remains intact.
However, the future direction of Bitcoin’s price remains uncertain, with investors cautiously navigating evolving market conditions.
At the time of writing, BTC is trading at $64,850, down more than 7% in just the last seven days, demonstrating the bearish sentiment surrounding the Bitcoin market.
Featured image of DALL-E, chart from TradingView.com