German Government Agency Sends $425M Worth Of BTC To Exchanges

Bitcoin (BTC) recently plummeted to a one-month low of $64,000, raising fears among bullish investors of an impending crisis. Selling pressure A retest of the lower support levels is also possible.

Adding to these concerns, an on-chain data firm recently revealed that German police wallets had transferred $425 million worth of BTC to crypto exchanges, a development that has sparked speculation about police intentions and their potential impact on the market.

Concerns over selling pressure

On Wednesday, crypto data analytics firm Arcam was detected A large cryptocurrency wallet named “German Government (BKS)” transferred 6,500 BTC, worth $425 million.

Wallets holding more than 50,000 BTC have moved their funds to new addresses since the end of January 2024. Some of the transferred BTC was sent to popular exchanges Kraken and Bitstamp.

BTC wallet activity at a German government agency early Wednesday morning. Source: Arkham

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The recent move by German government agencies to block BTC is of major importance. Seizures 50,000 BTC was seized in January, which at the time was considered the largest cryptocurrency seizure ever made in Germany.

Most of the BTC was seized by German police and the suspect voluntarily gave it to them. Official Wallet Provided by the German Federal Criminal Office (BKA). The government wallet currently contains 43,350 BTC, with a total value of over $2.8 billion.

Crypto Analyst Daan Crypto Trades was suggested The transfer of BTC from a German government wallet to an exchange may have led to the creation of short positions and a slight drop in Bitcoin prices during Wednesday’s trading session, raising concerns about potential selling pressure in the market and its impact on Bitcoin’s price trajectory.

Bitcoin faces signs of a downtrend

About Price Action Analysis of the market’s largest cryptocurrency, BTC, is reaching a critical juncture as analysts offer contrasting views.

Technical Analyst Ali Martinez Suggest Bitcoin’s recent breakout above the +0.5σ market cap to realized value (MVRV) price range of $67,890 suggests a possible correction towards the mid-range price range of $54,930, which could lead to a continuation of the downtrend.

Bitcoin
BTC’s MVRV momentum indicator suggests a drop towards $54,000. Source: Ali Martinez’s X

Martinez pointWe know that when MVRV falls below the one-year simple moving average (SMA), it is often a sign of a downtrend. This analysis suggests that BTC may face further downward price pressure due to heavy distribution near the top.

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In contrast to Martinez Bearish outlookAnother analyst who goes by the alias “Titan of Crypto” continues to be bullish on the Bitcoin bull market.

Analysts point to the Parabolic SAR indicator and the LMACD (Logarithmic MACD) on the two-month chart, which show that the bull market is still continuing. according to For analysts, these indicators suggest that BTC’s bullish momentum is sustained.

However, the future direction of Bitcoin’s price remains unclear, with investors carefully assessing the changing market conditions.

Bitcoin
The daily chart shows BTC’s 24-hour sideways price movement below $65,000. Source: BTCUSD on TradingView.com

At the time of writing, BTC is trading at $64,850, down over 7% in the past seven days alone, indicating bearish sentiment surrounding the Bitcoin market.

Featured image from DALL-E, chart from TradingView.com

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