With the recent release of June US CPI data, the crypto market’s anticipations of a bullish trend improved for a moment. However, Bitcoin’s recovery rate is slower than anticipated as supply pressure grows.
The main supply force comes from the German Government depleting their Bitcoin reserves and delaying the $60K breakout. While the broader market anticipates a comeback next week, the BTC price remains stuck under $60,000 for the time being.
As Bitcoin and altcoins await a demand surge, here’s why you should keep on HODL-ing. For a longer-term analysis, check out our BTC price prediction and consider the possibility of Bitcoin hitting $100,000 in 2024.
With a declining trend, the BTC price is below the 200D EMA and faces higher price rejection. Despite the recent jump to the $59,500 level, Bitcoin fails to overcome the short-term resistance trendline.
If a daily closing fails above the 200D EMA, the negative cycle could continue to test the support trendline. Currently, the BTC price trades at $57,329, with an intraday Doji visible during Asian market hours.
With the sideways trend, Bitcoin approaches the bottleneck stage of a triangle formed with the short-term trendline and support trendline. The downtick in the 50D EMA looms over a death cross with the 200D EMA.
On July 11, 2024, Bitcoin ETFs experienced a net inflow of $79 million, marking the fifth consecutive day of positive inflow, although the volume has dropped below the $100 million mark. Among the major players, BlackRock’s IBIT ETF led with a substantial inflow of $72.1 million, followed by Fidelity’s FBTC ETF with an inflow of $32.7 million.
In contrast, Grayscale’s GBTC ETF saw a significant outflow of $37.7 million, 4.6 times the outflow recorded the previous day. This data indicates mixed sentiments in the market, with some investors pulling back while others continue to pour funds into Bitcoin ETFs.
In an unexpected move, the German government has drastically reduced its Bitcoin reserves, now holding only 9,094 BTC worth about $521 million. This follows the sale of 6,458 BTC, valued at roughly $379 million, over the last 24 hours.
This significant sell-off is linked to the authorities’ seizure of $2.1 billion (50,000 BTC) from the operators of Movie2k, a central pirated movie platform known for distributing over 880,000 copies of pirated films since its inception in 2008.
If this pace of selling continues, it is projected that the German government may exhaust its Bitcoin holdings within the next two days. Since June 19, 2024, German authorities’ Bitcoin holdings have decreased from 49.9K BTC to 9.1K BTC by July 11, 2024, following a consistent sell-off that began on July 7, 2024.
As the chances of a rate cut in September increase and the German supply pressure is expected to ease in two days, the crypto bull run is ready to begin. With the secondary trendline breakout being the price action confirmation, the sideline traders are patient.
However, the sideways movement under 200D EMA brings an opportunity to hoard Bitcoin before the breakout rally begins. The uptrend can reach the overhead trendline near the $71K level.
Investors focusing on altcoins may find the next one to two months a promising window…
XRP holders are growing increasingly frustrated and confused over the U.S. Securities and Exchange Commission’s…
XRP is gaining momentum in the crypto market once again, and this time, it’s not…
When shoppers browse for something, they probably can't imagine owning a piece of the company…
Both Dogecoin and Shiba Inu are making headlines this week with significant whale activity and…
With Ethereum’s steady performance signaling renewed interest in the blockchain sector, attention is turning toward…
