German Government Running Out of Bitcoin to Sell, Potential Reaccumulation Phase Beginning
The German government is nearly done selling Bitcoin, with only 3,856 BTC left in its wallet after starting to sell just three weeks ago. This has added $222 million worth of selling pressure to the market, pulling BTC’s price below $60,000. However, signs of a potential bottom are starting to emerge as technical indicators point to a reaccumulation phase.
The German government began selling Bitcoin in mid-June after holding nearly 50,000 BTC since February 2024, believed to have been seized from the operator of the pirate movie website Movie2k. Recent transfers from the government’s wallet include 800 BTC to Kraken exchange, 500 BTC to wallet “bc1q,” and another 1,000 BTC to wallet “139p.”
Analysts suggest that the end of the German government’s selling could help Bitcoin find its local price bottom. The Wyckoff method indicates a potential price bottom and a recovery above the $60,000 mark, with popular crypto analyst Moustache predicting a return to that level soon.
Other indicators, such as the Coinbase Premium, also point to a local price bottom, signaling US demand for Bitcoin compared to the rest of the world. However, Bitcoin’s price needs to hold above $56,750 to prevent further bearish momentum.
As always, readers are advised to conduct their own research before making any investment decisions.
