Crypto analysis: BTC price declines, some vital role played by German government

 Crypto analysis:

 Bitcoin (BTC) faces resistance near the $64,000 daily level, leading to a 1.05% decline in trading on Wednesday. Price drops due to actions by the German government.

Recent data reveals significant Bitcoin activity involving the German Government and various cryptocurrency exchanges. On Tuesday, the German Government transferred 832.7 BTC, valued at $52 million, from its wallet, with 282.7 BTC worth $17.65 million moved to exchanges like Coinbase, Bitstamp, and Kraken. Over the past week, German authorities have transferred 2,240 BTC worth $142 million to multiple exchanges, potentially fueling trader anxiety and contributing to a 2.5% decline in Bitcoin's price this week. Concurrently, U.S. spot Bitcoin ETFs saw $13.70 million in outflows on Tuesday, with Grayscale and Bitwise experiencing significant reductions, while other ETFs like Blackrock and Fidelity saw modest increases in their Bitcoin holdings.

Increased selling activity from Bitcoin miners has also been observed, with 9,096.67 BTC transferred to exchanges on Monday and 6,751.91 BTC on Tuesday. This surge in selling might reflect miners' need to cover operational costs or capitalize on perceived price highs, adding to the selling pressure and hinting at a bearish market sentiment. Meanwhile, Conio announced a partnership with U.S. fintech firm Mesh, backed by Paypal Ventures, to launch Europe's first Open Banking solutions for Bitcoin. This new service allows Conio app users to access and transfer Bitcoin from top crypto exchanges directly to their wallets, leveraging open banking technology for streamlined authentication across over 300 exchanges and wallets.


BTC chart analysis:

Bitcoin (BTC) is having trouble breaking past the $64,000 mark, causing its price to drop by 1.05% on Wednesday. Similarly, Ethereum (ETH) and Ripple (XRP) also face resistance, leading to drops of 1% and 0.5%, respectively.


Crypto analysis


On Monday, Bitcoin tried but failed to surpass $63,956 and has since fallen to $61,488, a 1.05% decrease. If Bitcoin manages to close above $63,956, it might climb 5% to test the next resistance level at $67,147.

The daily chart shows that both the Relative Strength Index (RSI) and the Awesome Oscillator are below their neutral points (50 for RSI and zero for the Awesome Oscillator). For Bitcoin to gain upward momentum, these indicators need to move above their neutral levels.

If buyers (bulls) become more aggressive and the overall market sentiment is positive, Bitcoin could rally another 6% to reach the next resistance level at $71,280.

However, if Bitcoin drops below $58,375 and continues to fall, it could suggest ongoing bearish sentiment, potentially leading to a 3% decline to the May 1 low of $56,522.

Post a Comment

0 Comments