The Bitcoin (BTC) revival is on
The German government has sold more than half of its entire $BTC stack. $900 million worth of $BTC was transferred to exchanges on Monday, but Bitcoin appears to have already absorbed the selling and is starting to rise on Tuesday. Technical indicators point to the possibility that a $BTC revival could be beginning.
German selling is being mopped up
The German government may have already sold more than half of its entire holdings of $BTC, but it still has more than 23,000 $BTC. Given that it seems hell-bent on getting rid of its stack at these low prices, it might be wondered as to the German government’s real intent in this selling spree.
That said, it looks like the selling will continue, and Bitcoin bulls will need to keep stepping up to the plate in order to buy what the German government is selling.
So far, this does appear to be happening. What is probably institutional buying is acting like a sponge and mopping up the large tranches of $BTC that are hitting the exchanges.
$BTC still in very bearish territory
Source: TradingView
While still underneath the 200-day exponential moving average (EMA), the $BTC price is still in very bearish territory. Currently, the price is trying to surpass the weaker resistance at $67,000, but once through this, $BTC would likely rise up to retest the strong resistance at $58,000 again, which also happens to be the level of the 200-day EMA.
Upwards momentum about to enter the market
Source: TradingView
On the weekly time frame, one can see the resistances that await $BTC. One might think that these could reject any rally and that finally $BTC will succumb to all the selling, with bulls giving up the ghost and accepting that an early bear market is the more likely occurrence.
However, there is one indicator that is very much in Bitcoin’s favour, and it can provide the momentum to drag Bitcoin back into the bull market uptrend. This is the stochastic RSI, which can be seen at the bottom of the chart. A cross up from the bottom takes place on average once every six months, and it can be seen that this cross up is taking place right now.
It should also be noted that a fakeout of this indicator took place in early June. The double bottom of the stochastic RSI on the weekly time frame is no small matter. This can provide an incredibly powerful momentum boost to Bitcoin. The revival starts here.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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