Bitcoin BTC Breaks Below 200Day Moving Average Amid NationalLevel Whale Dump Sparking Panic Selling

CoinWorld reported:
On Friday (July 5th), Bitcoin rebounded slightly after losing the $57,000 support level, but the bears still firmly controlled the steering wheel. The German government once again sold 1,300 Bitcoins, causing a panic in the market and leading to Bitcoin falling below the 200-day moving average, a key technical indicator used by traders to identify long-term trends.
According to Arkham Data Monitoring, the whale wallet address labeled as the “German government” transferred a total of 1,300 Bitcoins, equivalent to $75.53 million, to Bitstamp, Coinbase, and Kraken.


This sale caused the Bitcoin price to fall below the key 200-day simple moving average (SMA), which is a crucial technical indicator used by traders to assess long-term trends.
Justin Sun, the founder of TRON, tweeted, “I am willing to negotiate with the German government to buy all Bitcoins off the market in order to minimize the impact on the market.”


QCP Capital pointed out that it was another day of heavy selling pressure, causing Bitcoin to break the $60,000 support level and reach a low of $57,875.
The report also emphasized signs of miners surrendering, which historically corresponded to price bottoms, such as when Bitcoin’s trading price dropped to $17,000 in 2022 and hash rates plummeted.
Despite ongoing selling, the options market remains optimistic, especially for Ethereum.
QCP Capital added, “The options market remains bullish as we continue to see significant interest in Ethereum call options expiring in September and December.”
In addition, the market is preparing for the impact of the upcoming Mt. Gox creditor payout.
Peter Chung, Director of Presto Research, stated that the Mt. Gox rehabilitation trustee plans to distribute billions of dollars worth of Bitcoin and Bitcoin Cash (BCH) to creditors between July 1st and October 31st, 2024.
The market expects this influx to significantly change the supply-demand dynamics.
“Our analysis indicates that the selling pressure on Bitcoin Cash will be four times that of Bitcoin,” explained Chung, suggesting that this presents a potential trading opportunity for those looking to handle market volatility.
Bitcoin Technical Analysis
CMTrade stated that Bitcoin’s RSI is below 30, which could indicate that the price is in a sustained downtrend or simply oversold, thus inevitably leading to a retracement. In this case, look for bullish divergences.
The MACD is below its signal line and is negative, indicating a bearish configuration.
Furthermore, the price is below its 20 and 50 period moving averages, which are $57,976 and $59,168, respectively.
“Our pivot point is at $57,610, and our preference is for a downward trend as long as $57,610 remains a resistance level.”
“An alternative scenario is a move above $57,610, targeting $58,420 and $58,900.”


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