Originally published on: July 13, 2024
Social media was buzzing on July 12 as reports confirmed that the German government’s Bitcoin wallets now show a zero balance. Many experts believe that this development could lead to a surge in Bitcoin (BTC) price, as the assumed sell pressure from the government has been removed.
Despite this news, Bitcoin’s price remains within a tight range, with $60,000 acting as resistance and $54,000 as support. Let’s delve into the technical factors influencing Bitcoin’s recent price movements.
The recent breakdown from $60,000 confirmed a double-top pattern, with a bear flag continuation setting in. Sell volume has been increasing as the downtrend accelerates, while attempted breakouts are met with weak buy volume.
Traders are looking for a strong push above $60,000 with high volume to break this pattern. Establishing support above this level is crucial for a sustained uptrend.
Bitcoin’s price tends to gravitate towards areas with the most liquidity. The current volume profile suggests that price is bouncing between bids at $54,000 to $57,000 and asks at $60,000.
With leverage traders heavily positioned at $56,500, a break below this level could trigger further downside if the bear flag pattern holds.
While the market anticipates a bullish trend reversal following the German government’s Bitcoin sell-off, there is a potential threat of Mt. Gox clients selling off their recent redemptions. This could introduce new sell pressure and keep prices within the current range or push them towards the M-top target at $44,000.
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Remember, this article is informational and does not constitute investment advice. Conduct your own research before making any financial decisions.
