What’s Next for Bitcoin Price as German Government’s BTC Balance Hits Zero?
On July 12, the X social network announced that several on-chain news outlets and independent analysts had announced that the German government's bitcoin wallets now have a zero balance. A portion of this group is suggesting that the price of Bitcoin (BTC) will go higher as this selling pressure is removed from the market.
Despite the news, Bitcoin's price is confined within a tight range, with $60,000 serving as resistance and $54,000 as support.
Let's take a look at some of the technical issues behind Bitcoin's recent price action.
60,000 dollars to continue and oppose the flag
Bitcoin's breakout above $60,000 confirmed an M-top (or double-top) and a bearish flag continuation pattern was set. Notice how the retracement trend is accelerating and the selling volume is increasing and attempts to move up are being held up by weak buying volume.
Ideally, traders would like to see this pattern break with a strong high pressure above $60,000 where the 61.8% Fibonacci retracement level resides and then a few daily candles close above $60,000 to establish support at this level or higher.
Bitcoin order book depth and liquidity levels
In crypto, it is clear that the price is trending towards the most liquid direction and comparing the BTC/USD rate profile with the depth of Bitcoin's order book in the range of 2% to 5%, the price is collapsing between bidders around $54,000. $57,000 and the asking portion is set at $60,000.
Liquidity charts show that traders have opened heavy longs around $56,500, so if the price breaks below that and the current bearish flag continues, the situation could be dire.
Related: Why Bitcoin Price Went Up Today
While the new narrative in the crypto media may be the new narrative in the crypto media, market participants' speculation that the German government will end its BTC sale is that a portion of the 140,000 Bitcoin will be returned to MT. Gox customers selling their recent redemptions could be the next selling-pressure event that will plug the price in the current range and even send it to the M-top target at $44,000.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
