CoinWired Report:
The German government has once again transferred 1,000 bitcoins worth $55.8 million to cryptocurrency exchanges and unmarked wallets. As of the time of writing, Bitcoin is bearish, falling below the 200-day moving average and is likely to reach a level of $52,800.
The cryptocurrency market has turned bearish again, with major assets such as Bitcoin [BTC], Ethereum [ETH], and Solana [SOL] falling by 2.5%, 2.7%, and 4.5% respectively.
According to data from blockchain intelligence company Arkham, the German government has once again transferred 1,000 bitcoins worth $55.8 million during this prolonged market downturn.
German government dumps 1,000 BTC
According to Arkham, a significant portion of the 1,000 bitcoins transferred by the German government, including 500 bitcoins, worth $27.9 million, were sent to cryptocurrency exchanges such as Bitstamp and Coinbase.
Meanwhile, another 500 bitcoins worth $27.9 million were transferred to an unmarked wallet address, “139PoP”.
Since June 19, the government has been transferring a significant amount of BTC to different exchanges and the same wallet address.
Therefore, this unmarked wallet address “139PoP” may belong to an institution or an OTC service provider.
Impact of the dump
The continuous transfer of bitcoins by the German government has severely affected the cryptocurrency market.
Since June 19, BTC has dropped by over 15%, from a level of $65,200 to $55,700. According to TradingView data, during this period, BTC reached a low of $53,269.
Considering this ongoing sell-off, on July 4, Tron [TRX] founder Justin Sun proposed to buy all BTC holdings worth $2.3 billion from the German government to minimize the impact on the market.
However, the government seems to have ignored Sun’s proposal.
Based on historical data, if this BTC transfer continues in the market, there is a high possibility of further decline in BTC.
Bitcoin technical analysis and key levels
On-chain, Bitcoin appears bearish as it has broken the significant support level of $58,000, retested the level, and formed a strong bearish candle below it.
Furthermore, BTC is trading below the 200-day Exponential Moving Average (EMA) on the daily timeframe, indicating bearishness.
Therefore, BTC is likely to reach the next support level at $52,800.
Despite bearish signals on the chart, the Relative Strength Index (RSI) remains in oversold territory, indicating potential for a recovery.
Short covering turning bullish
According to data from on-chain analysis firm Coinglass, despite the liquidation of long positions worth $46.97 million by the bulls, short sellers have liquidated over $86 million worth of short positions this year.
The increase in short liquidations indicates that there are still bulls in the market. However, the Open Interest (OI) has declined by 4.3%, indicating concerns among market participants.
Whether it is a reality or not, the following is the TRX market value in BTC terms
At the time of writing, the trading price of BTC is close to $56,000, with a decrease of over 2.5% in the past 24 hours. During this period, it also reached a low of $54,400.
In the long term, BTC has seen a 10% decline in performance over the past seven days. In the past 30 days, BTC has lost over 18% of its value.