Bitcoin Price Climbs Back Above $57K as German Government Gets Back $200M in BTC from Exchanges
On July 8, Bitcoin’s price dropped sharply to $54,278. This decline followed the movement of approximately 16,000 BTC, valued at around $900 million, from a Bitcoin wallet associated with the German government to several exchanges. However, the market sentiment improved during early Asian trading hours on Tuesday when the German Federal Criminal Police Office (BKA) received over $200 million worth of Bitcoin back from exchanges such as Kraken, Coinbase, and Bitstamp. According to data from Arkham, these assets were sent to the exchanges but ultimately did not hit the market, which helped stabilize the price.
The German government had initially seized nearly 50,000 BTC in 2013, worth over $2 billion at the time, from the operators of Movie2k.to, a film piracy website. The assets were received in mid-January after a voluntary transfer from the suspects. At the time of writing, Bitcoin was trading at $57,362, up 3.35% over the last 24 hours.
Approximately $240 million in crypto liquidations accompanied Bitcoin’s return above $57,000. This included $51.45 million in short BTC positions and $47.95 million in long liquidations. The largest single liquidation order occurred on OKX, involving a BTC/USDT swap valued at $11.64 million.
Bitcoin is currently facing resistance from the 200-day exponential moving average (EMA) at $58,178. BTC bulls need to flip this level back into support as continued trading below the 200-day EMA could frustrate investors and lead to more losses. On the upside, a bullish divergence from the daily relative strength index (RSI) suggests strength in the prevailing uptrend, prompting traders to buy more during local dips.
Key levels to watch include the psychological level at $60,000 and the major resistance at $63,000, where the 50-day EMA and the 100-day EMA converge. Overcoming this level could confirm a breakout from the downtrend, with BTC potentially reaching $65,000 and later $70,000.
Conversely, the RSI remains in the negative region at 36, indicating that market conditions still favor the downside. The 100-day and the 50-day EMAs are close to producing a bearish cross, which could add to the sell-side pressure, potentially sending BTC lower. If this bearish scenario unfolds, BTC may drop towards the $55,000 psychological level and then the July 5 low at $53,500. Below that, the $50,000 psychological level would serve as the best support line for buyers in the short term.
Thanks for reading. Drop a like and share your thoughts or the cryptos you are investing in.
$800 per day on autopilot (crypto *cheat code* revealed) click the link and get $500 off🤫🤫
