Bitcoin (BTC) price may have seen the local bottom as the German government is running out of Bitcoin to sell. Technical indicators point to the potential beginning of the re-accumulation phase.
German gov’t nearly done selling Bitcoin
The German government’s wallet is down to just 3,856 Bitcoin, only three weeks after it started selling.
As a result, the additional $222 million worth of selling pressure has pulled the BTC price below $60,000 over the past week, but signs of a potential bottom are starting to emerge.
In its latest transfers on July 12, the wallet sent 800 BTC to Kraken exchange, 500 BTC to wallet "bc1q" and another 1,000 BTC to wallet ‘="139p,"
The wallet started selling Bitcoin in the middle of June after it held nearly 50,000 BTC since February 2024. The funds are believed to have been seized from the pirate movie website operator Movie2k.
Bottom may be in but BTC price needs to hold $56.7K
The end of the German government’s Bitcoin selling could help Bitcoin find its local price bottom.
For instance, technical analysis using the Wyckoff method points to a potential price bottom and a recovery above the $60,000 psychological mark, according to popular crypto analyst Moustache.
The analyst wrote in a July 11 X post:
“I think we will see $BTC back above $60,000 very soon.”
Other indicators are also pointing to a local price bottom, including the Coinbase Premium, according to crypto trader Marty Party, who shared the below chart in a July 11 X post.
The Coinbase premium measures the price differences between Bitcoin on Coinbase, largely used by United States investors and Binance. The premium signals US demand for Bitcoin compared to the rest of the world.
However, as Cointelegraph reported, Bitcoin price needs to hold above the $56,750 mark to stop further bearish momentum.