Bitcoin had an eventful day as the German government carried out a massive transfer of cryptocurrency, sending ripples through the market. According to Arkham, at 16:25 UTC+8, the government moved 1,300 BTC, worth about $75.53 million, to major centralized exchanges (CEXs) including Bitstamp, Coinbase, and Kraken. This marks the largest recent transfer of Bitcoin to a CEX.
In parallel, the German government transferred 1,700 BTC, valued at $99 million, to address 139Po, likely intended for institutional services or over-the-counter (OTC) trading. Despite these large transfers, the German government still holds substantial reserves of 40,359 BTC, equivalent to roughly $2.3 billion at current market prices.
These big moves caused Bitcoin's value to plummet, dropping to a low of $57,000. However, the market quickly corrected and BTC recovered to $58,212. 24-hour trading volume reached $121.71 billion, with a market cap of $1.15 trillion and market share of 53.30%. Despite the recovery, Bitcoin's price is still down 3.53% in the past 24 hours.
Analysts Eye $58,000 as Key Bitcoin Breakout Point
In a recent analysis, well-known cryptocurrency analyst Trader Tardigrade noted that BTC has pulled back to the lower support zone of a critical range. Despite this pullback, the analyst maintains a bullish outlook for BTC, highlighting that the cryptocurrency is poised for a significant upswing.
Citing historical chart patterns, trader Tardigrade said, “The wider the range, the bigger the price rally,” suggesting Bitcoin’s recent consolidation could lead to a significant price surge.
Technical indicators further support the bullish sentiment, according to data from Glassnode. One key indicator is the Mayer Multiple, which evaluates the ratio of Bitcoin's price to the 200-day moving average (200DMA). The 200DMA is a widely recognized indicator used to gauge bullish or bearish momentum, and a move above or below this level often marks an important market turning point.
Currently, BTC’s 200DMA is around $58,000. This level is in line with various on-chain price models, providing a further confluence and strengthening the bullish view. As Bitcoin approaches this key threshold, analysts and traders will be closely monitoring price movements in search of potential breakout signals.
Related Article | Investor profitability remains strong as Bitcoin trades at double its cost base: Glassnode report
