- The German government’s wallet is down to just 3,856 Bitcoin (BTC) after starting to sell its holdings in mid-June.
- Technical indicators like the Wyckoff method and the Coinbase Premium suggest that Bitcoin’s price may have found a local bottom.
- For the potential bottom to be confirmed, Bitcoin’s price needs to hold above the $56,700 level.
The German government is nearly done selling its Bitcoin holdings, which could signal a price bottom for BTC. With the additional selling pressure ending soon, Bitcoin may be ready to start recovering.
German Government’s Bitcoin Reserves Almost Depleted
The German government’s wallet now holds just 3,856 BTC, down significantly from nearly 50,000 BTC it held in February 2022. In the past three weeks, it has sold over 200 million worth of Bitcoin, sending the funds to exchanges like Kraken.
This selling pressure has contributed to pushing Bitcoin’s price below $60,000 over the past week. But with the government’s reserves now dwindling, the downward pressure may soon abate.
Indicators Pointing to Local Price Bottom
Some analysts believe Bitcoin’s price may have found a local bottom around $56,700. The popular crypto analyst Moustache points to a potential Wyckoff reaccumulation pattern emerging, which would precede a recovery above $60,000.
Other metrics like the Coinbase Premium, which measures demand from U.S. investors, also show signs of a price floor forming. For the bottom to be confirmed, Bitcoin likely needs to hold support at $56,750.
Conclusion
The end of the German government’s BTC selling could remove significant downward pressure on Bitcoin’s price. If key support levels hold, Bitcoin may be bottoming out before beginning its next leg up. Technical indicators lend credence to the idea that a local price bottom is forming.
