Bitcoin (BTC) Market Showing 'First Signs Of Stability” As German Government Sell-Off Continues

The crypto market saw a revival on Tuesday evening, with Bitcoin (BTC) inching past $59,000 as fears after last week’s drawdown triggered by concerns over potential selling by Germany’s government faded.

Cryptocurrency prices showed signs of a rebound on Tuesday evening, with Bitcoin (BTC) climbing above the $59,000 mark. This comes after the market faced sell-offs last week due to concerns about potential selling by the German government, which have now largely subsided.

Bitcoin price showed an increase of over 4% on Tuesday, reaching a high of $59,322 before retracing slightly. At the time of writing, BTC is trading at $58,705, according to CoinGecko.

There is a sense of optimism among traders, especially after Bitcoin’s sharp decline last week, which brought the asset below the $54,000 level. One trader believes that BTC is showing its first signs of stability following the recent price action.

In a recent X post, trader Rekt Capital observed that Bitcoin is nearing its previous “June downtrend” line, and this resistance will be tested if a bullish divergence scenario plays out. The crypto trader also shared a chart that includes relative strength index (RSI) data, which on daily timeframes was hinting at bullish divergence with price.

#BTC Bitcoin is showcasing some initial signs of stability after the crash

And in doing so, it is creeping closer to the Downtrend (light blue)

This Downtrend will be challenged if the Bullish Divergence plays out

$BTC #Crypto #Bitcoin

uD83DuDC49https://t.co/2TrYTkvb4H pic.twitter.com/vv98DSufPQ

Moreover, looking at the weekly chart, Rekt Capital highlighted the importance of Bitcoin closing above $60,600 to regain strong upside momentum. “On this recent rally, BTC has a chance to reclaim $60600 as support to confirm last week’s extensive downside as a fake breakdown. Crucial days ahead,” the trader noted.

Bitcoin price remains unfazed as German government sell-offs continue

The recent negative performance of Bitcoin and other cryptocurrencies is linked to the German state of Saxony dumping confiscated assets and the ongoing distribution of Mt. Gox repayments. Ten years after the bankruptcy, the now-defunct exchange Mt. Gox has begun reimbursing its creditors, distributing roughly $9 billion to victims of the exchange hack.

On Monday, the German authorities transferred BTC worth $900 million. This was followed by an additional $362 million in Bitcoin being moved to Kraken and crypto trading desks on Tuesday. According to Wednesday's data, the German BKA has transferred out over 5,853 BTC so far.

To date, Germany has sold around two-thirds of its seized Bitcoin stockpile, with roughly $1.06 billion remaining, according to data from blockchain analytics firm Arkham Intelligence.

Meanwhile, only a few miners are remaining profitable at current prices, setting up a scenario that could indicate a “local bottom” for the flagship cryptocurrency.

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