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HomeNewsRecent Bitcoin Rally Faces Challenge as German Government Liquidates Holdings

Recent Bitcoin Rally Faces Challenge as German Government Liquidates Holdings

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  • Large Bitcoin whale deposits 809 BTC to Binance, increasing selling pressure amid a potential bull rally.
  • Technical indicators mixed: Chaikin Money Flow suggests growth potential, Money Flow Index trends bearish.

Bitcoin (BTC) has witnessed a mix of bullish and bearish signals, casting uncertainty over the direction of its price movement. The value has shown a recovery, increasing by more than 3% in the last 24 hours, breaking past the $57,000 mark.

This recent uptick comes after a period of decline, painting a potentially optimistic future for the digital currency.

However, these positive signs are tempered by substantial selling activities. Notably, the German government has been actively liquidating its Bitcoin holdings, transferring 9,634 BTC, valued at over $551 million, to various cryptocurrency exchanges such as Kraken and Coinbase. 

Since June 19, the German government has offloaded a total of 24,304 BTC, worth approximately $1.44 billion. Despite these sales, it retains a significant amount of Bitcoin, with 28,988 BTC in its coffers, currently valued at around $1.66 billion.

btc-move-to-binance
Source: X/@lookonchain

Adding to the selling pressure, recent activity from a prominent Bitcoin whale was observed, where 809 BTC, equivalent to $45.18 million, were moved to the exchange Binance. This influx of large-scale sell-offs raises concerns about the sustainability of Bitcoin’s current bullish trend.

Based on some analysis done by ETHNews, data from CryptoQuant shows mixed signals. While Bitcoin’s Exchange Reserve has decreased, indicating reduced selling pressure in general, the net deposit on exchanges has been higher than the average of the past seven days, suggesting an increase in selling pressure.

cryptoquant-btc-signal
Source: CryptoQuant

Further complicating the outlook is the sentiment among U.S. investors, as evidenced by a negative Coinbase premium, which signals a predominance of selling activities. Yet, not all indicators are bearish. The Adjusted Spent Output Profit Ratio (aSORP) suggests that many investors are selling at a loss, a scenario often observed at market bottoms.

BTC-aSORP-
Source: CryptoQuant

Moreover, Bitcoin’s Binary Coin Days Destroyed (CDD) indicates that movements by long-term holders have been minimal, hinting at their continued confidence in holding onto their investments.

BTCUSD_2024-07-09_10-46-26
Source: Tradingview

Looking at the technical analysis, the Chaikin Money Flow (CMF) indicator shows an uptick, suggesting potential for further price increases. However, the Money Flow Index (MFI) is trending downward, presenting a bearish counterpoint that could threaten the continuation of the bull rally.

Disclaimer: ETHNews does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to cryptocurrencies. ETHNews is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned.
Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: [email protected] Phone: +49 160 92211628
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