German govt runs out of BTC as Bitcoin eyes daily close above $58,000

Key Takeaways

• German government sold last 3,846 BTC, concluding 23-day process of liquidating seized assets.
• Bitcoin approaches key resistance levels after rebounding to $58,000 following recent pullback.

The German government emptied its Bitcoin (BTC) wallet after moving the last 3,846 BTC to addresses tied to Flow Traders and an over the counter (OTC) service, accordin g to on-chain data platform Arkham Intelligence. The reduction of the BTC supply overhang could let Bitcoin regain some steam.

The government dump saga took 23 days, the period it took for the German authorities to sell the nearly 50,000 BTC seized after closing the piracy platform Movie2k.

The selling activity by the German government, tied to the payment to Mt. Gox’s creditors, is the main reason analysts identified behind the recent crypto market price pullback. Over the last two weeks, BTC fell from the $63,000 price area to the $54,000 level. Despite a rebound to the $58,000 area, Bitcoin still has to conquer some key price levels again.

Now that part of the supply overhang is gone, Bitcoin might be able to sustain upward momentum. According to the trader identified as Rekt Capital, first BTC must close the day above the $58,350 area, and then manage to perform a weekly close above $60,600.

Notably, Bitcoin is close to challenging the downtrend line that has been pushing its price down for the past month and a half, added the trader. That’s the third attempt in three days, and the fourth time this month. The previous three attempts ended up with strong rejections.

As to what to expect in terms of prices over the next few days, a fellow trader who identifies himself as Altcoin Sherpa highlighted that Bitcoin could perform a bounce at the current price level. If a bounce happens now, BTC could start a movement back to the $63,000 area.