The Impact of German Government Bitcoin Wallet Sales on the Market
In recent days, numerous reports and analyses have emerged about the end of sales in Bitcoin wallets owned by the German government. Experts have suggested that this situation could positively affect the price of BTC.
Bitcoin, which has been trading in a narrow range for weeks, dropped to $54,000 at the beginning of the week. However, the news of the end of sales in Germany and the failed assassination attempt on Donald Trump pushed the market back to $60,000. The price model created by the leading cryptocurrency suggests structures similar to double tops and bear flag formations.
For BTC to invalidate these bearish formations, it is crucial for the price to stay above $60,000 permanently. The $60,000 level also corresponds to the 61.8% Fibonacci retracement level.
Where are orders concentrated?
In cryptocurrency markets, prices tend to move towards levels where liquidity is high.
Bitcoin Price Analysis and Market Trends
When examining the order book depth in the 2% to 5% range of Bitcoin, it is observed that the price moves between the supply blocks of $54,000 to $57,000 and the demand block at $60,000.
Liquidation charts show that leveraged investors are predominantly opening long positions around $56,500. If the price falls below this level and the bear flag formation continues, the market could face further challenges.
What is Bitcoin Pricing?
Market participants are expecting Bitcoin’s price to rise as the sale of BTC by the German government is completed. However, if the 140,000 Bitcoin to be refunded to Mt. Gox customers are sold, the price may remain within the current range or drop towards $44,000.
Another factor affecting BTC price is the US elections. Investors are speculating that if Trump wins, more crypto-friendly policies may be implemented in the country.
The Impact of Fed’s Monetary Policy on Bitcoin
There is growing anticipation in the market regarding potential changes in the Federal Reserve’s monetary policy, which could have a significant impact on cryptocurrencies. If the Fed decides to start cutting interest rates in September as expected, the price of Bitcoin may continue to rise.
Fed Likely to Cut Interest Rates in September
According to FedWatch data, there is a 90% chance that the central bank will make its first interest rate cut in September after a long period. This decision could potentially boost the value of Bitcoin even further.