Crypto Market is Down – But Here\'s Why Bitcoin Price May Bounce

This week didn't start on a high note for crypto traders as most altcoins are down. Bitcoin is not performing well either, with the BTC price again

Crypto Market is Down – But Here’s Why Bitcoin Price May Bounce

This week didn’t start on a high note for crypto traders as most altcoins are down. Bitcoin is not performing well either, with the BTC price again plunging below $56k before quickly reclaiming this level.

But what’s causing this downturn again?

German Government Prepares for Another Bitcoin Sale

According to LookOnChain, the German government transferred out 1,000 BTC (around $56 million) this morning.

Half of this BTC, around 500 BTC, was transferred to Coinbase and Bitstamp.

The #German government transferred 1,000 $BTC($55.8M) out again 15 minutes ago, of which 500 $BTC($27.9M) was deposited to #Coinbase and #Bitstamp.The #German government currently holds 38,826 $BTC($2.17B).https://t.co/h2JlBVFPsL pic.twitter.com/NS5pkMixrj

However, they still currently hold around $2.17 billion in Bitcoin. It appears they are preparing for a sale, again.

They also transferred out 700 BTC this weekend. These moves suggest that the German government may be liquidating some of its Bitcoin holdings, which could contribute to downward pressure on the price.

Analyst Still Positive on Bitcoin Price

Analyst Jelle shared his thoughts on the current Bitcoin situation:

“Bitcoin has confirmed a higher-timeframe lower low, meaning the uptrend we were in for the past 18 months is under pressure. If it reclaims this level quickly, we can act like it never happened. Until then, caution is advisable.”

He also noted that Bitcoin is testing the weekly RSI midlevel, which has historically acted as key support and resistance. This could indicate that a bounce may occur soon.

Conclusion

Well, well, well. Look at that. The crypto market is having a bit of a rough time at the moment. With the German government preparing to sell off some of its BTC and prices taking a hit, it’s easy to feel a bit jittery.

But here’s the thing – we’ve seen this before. Bitcoin has had its ups and downs, but somehow it always seems to find the positive momentum.

Don’t forget that not only BTC ETFs are approved and trading, but ETH ETFs are also about to start trading this month.

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