The German government dogged selling of Bitcoin continues, but the $BTC price appears to be holding firm so far. Can the Bitcoin bulls absorb all the selling, or could we see another dump to the downside?
$BTC price remains buoyant
According to Arkham Intelligence, the German government sent another 5103 BTC to exchanges on Wednesday morning, worth around $300 million. The German government holdings are now down to 18,860 BTC, worth $1.11 billion.
In the face of all this selling, the BTC price is remarkably buoyant, and those responsible for the sales must be wondering what on earth it will take to bring the price down under the recent $53,400 local low.
Why is the German government selling?
The question might be asked: “Why is the German government selling its $BTC at such rock-bottom prices in a bull market?” One would imagine that the government would want to get a good price for its $BTC so that it can do its duty to taxpayers.
Or are the German holdings being used to try and force Bitcoin under the $51,000 last-ditch support level and force it into an early bear market? If this is the case, it doesn’t look like it is going to work, and Germany could be out of the sovereign race for Bitcoin for good.
The recovery is taking shape
Source: TradingView
In the short term 4-hour time frame, it can be seen that the $BTC price has been following a downward trend. However, after touching a local bottom at $53,400, the price has rallied, making a higher low, and forming a bullish W pattern, which is often found at the bottom of downtrends.
The $58,000 resistance might be in the process of being turned into support, and at the same time, this could be a confirmation of a breakout of the W pattern. A measured move of the pattern would take the price to $62,500.
However, if the pattern is nullified, by a confirmed move below the neckline, this could also take the price back through the support trend line, and we could see $BTC going back down again.
$BTC set to battle through resistance levels
Source: TradingView
Putting in the more important support and resistance levels for Bitcoin, it can be seen that things are certainly starting to look better for the alpha cryptocurrency. Taking hold above $58,000 would seem to be the key for advancement in the price. $60,000, $61,500, and $63,000 through to $64,000 are the next critical levels for $BTC to break through.
Getting above $64,000 could leave the path clear to $67,000, and then the top of the range at $71,400. With potentially more than a year left in its bull market, Bitcoin should not be written off. There is a lot of upside resistance to be turned back into support, but $BTC may be making a start on this.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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