The German government has successfully liquidated its remaining Bitcoin (BTC) holdings, moving the final 3,846 BTC to addresses associated with Flow Traders and an over-the-counter (OTC) service. This concludes a 23-day process of selling nearly 50,000 BTC seized from the piracy platform Movie2k. On-chain data from Arkham Intelligence confirms that the government’s Bitcoin wallet is now empty.
The sale of these BTC holdings, linked to the settlement with Mt. Gox’s creditors, is considered a major factor in the recent decline in Bitcoin prices. Over the past two weeks, BTC dropped from around $63,000 to approximately $54,000. However, Bitcoin has since rebounded to the $58,000 range and is approaching key resistance levels.
Analysts suggest that with the reduction in the BTC supply overhang, Bitcoin could regain upward momentum. Trader Rekt Capital notes that Bitcoin needs to close the day above $58,350 and achieve a weekly close above $60,600 to initiate a significant rally.
Bitcoin is currently testing the downtrend line that has suppressed its price for the past month and a half. This marks the third attempt in three days and the fourth this month, with previous efforts resulting in strong rejections.
Trader Altcoin Sherpa highlights the possibility of a bounce at the current price level, potentially propelling Bitcoin back to the $63,000 area if successful.
As Bitcoin challenges these resistance levels, the cryptocurrency market is closely monitoring its next moves for signs of a sustained rally.
