The German government has now sold all of its Bitcoin holdings – going from nearly 50,000 BTC to zero in a very short amount of time. Bitcoin has absorbed the impact and is continuing its recovery. The $BTC price is now at $58,700.
It’s All Gone!
According to Arkham Intelligence, the German government sent 49,860 BTC to exchanges ($2.9 billion) and sold them over a 3-week period. After sending off its final tranche of Bitcoin, the government wallet received the sum of 0.0000321 BTC, worth $1.87, from an unknown benefactor.
Bitcoin Recovery Continues
With this particular overhang on Bitcoin done with, the $BTC price is continuing to recover, putting on 9.8% since the local bottom nine days ago. That almost 50,000 BTC from just one seller could be soaked up in such a fashion bears testament to the demand for BTC that must be in the market.
Bitcoin’s Journey Back
Source: TradingView
In the short time frame of the 4-hourly, the $BTC price looks to be trying to break through the downward-sloping trend line. If the price can confirm the break, the first resistance at $58,500 will be next.
Bulls would be looking to break the subsequent resistances at $60,000 and $61,400, and then, all being well, the price would potentially be drawn up to the top of the range at $71,400.
Two Telling Indicators
Source: TradingView
Zooming right out to the macro time frame of the weekly, the importance of the resistances can be noted. Also, the relative strength index (RSI), second indicator from bottom of the chart, is showing a tick up that touches the mid-way point of this indicator. Bull markets are usually characterised by being above this 50 level, so climbing back above, and holding this level, will be very important.
The most telling, and probably the most powerful indicator, especially on the weekly time frame, is the stochastic RSI, at the bottom of the chart. The cross up of the blue fast line, above the orange slow line, needs to continue. If the lines can both cross up above the 25 level, the resulting positive price momentum can drive $BTC back to the top of the range, and beyond.
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