Whales And German Government Fuel Market Volatility As Bitcoin Price Analysis Hints At A Potential Mid-Range Breakdown

The German government has recently begun selling millions of dollars worth of Bitcoin (BTC) from a confiscated wallet, further contributing to the lack of catalysts for a price recovery in the cryptocurrency market.

The German government has begun selling millions of dollars worth of Bitcoin (BTC) from a confiscated wallet, contributing to the lack of catalysts for a price recovery in the cryptocurrency market.

Increased selling activity and unprecedented selling by long-term BTC whales have led to a sharp price correction, preventing Bitcoin from consolidating above $70,000 and retesting its previous all-time high.

Whales And German Government Fuel Market Volatility

Blockchain analysis platform Arkham detected the German government’s activity in selling Bitcoin on cryptocurrency exchanges. During Thursday’s morning trading session, $65 million worth of BTC was sent to two likely exchange deposits, including Coinbase.

As previously reported by NewsBTC, the German government moved $600 million in BTC on Wednesday, with $130 million sent to four likely exchange deposits, including Kraken and Bitstamp. According to Arkham’s records, the German government still holds $3.05 billion in BTC.

In late January, German police seized the country’s largest cryptocurrency haul, confiscating 50,000 Bitcoin, currently valued at $2.17 billion. The seizure occurred after the suspects voluntarily transferred the BTC to official wallets provided by the Federal Criminal Police Office (BKA).

Furthermore, recent on-chain data reveals that long-term BTC whales have sold a substantial $1.2 billion in Bitcoin over the last two weeks, exacerbating the market downturn.

Bitcoin Price Analysis

Technical analyst Mags recently shared an insightful analysis of Bitcoin’s current price action, suggesting a potential mid-range breakdown. Mags presents two possible scenarios for the market’s future direction:

Bitcoin reclaims the mid-range level in this scenario, leading to a potential drive back towards the range high. According to Mags’ analysis, if this scenario plays out, it may result in a breakout above the previous range high, suggesting a bullish trend continuation.

Alternatively, BTC may retest the range low before moving higher. If this scenario unfolds, it could lead to a prolonged period of sideways movement, potentially extending the consolidation phase. However, even in this scenario, Mags maintains a bullish outlook as the overall higher time frame structure remains positive.

Featured image from Shutterstock, chart from TradingView.com

News source：https://www.kdj.com/cryptocurrencies-news/articles/whales-german-government-fuel-market-volatility-bitcoin-price-analysis-hints-potential-midrange-breakdown.html

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