The German authorities emptied its Bitcoin (BTC) pockets

The discount of the BTC provide overhang may let Bitcoin regain some steam.

Key Takeaways

The German authorities have emptied their Bitcoin (BTC) wallets after moving the final 3,846 BTC to addresses linked to Circulation Merchants and an over-the-counter (OTC) service, according to on-chain data platform Arkham Intelligence. This concludes the sell-off of the BTC holdings, which began on April 25.

The sell-off of the remaining BTC holdings by the German authorities is expected to clear the way for the cryptocurrency to regain some of its lost steam. The discount of the BTC supply overhang may let Bitcoin regain some steam.

The government sell-off saga took 23 days, the time it took for the German authorities to sell the nearly 50,000 BTC seized after shutting down the piracy platform Movie2k.

The selling activity by the German authorities, tied to the payment to Mt. Gox’s creditors, is the main reason analysts pointed to for the recent crypto market value pullback. Over the past two weeks, BTC fell from the $63,000 price zone to the $54,000 level. Despite a rebound to the $58,000 zone, Bitcoin still has to reclaim some key price levels again.

Now that a portion of the supply overhang is gone, Bitcoin might be able to maintain upward momentum. According to the trader known as Rekt Capital, first BTC must close the day above the $58,350 zone, after which it has to manage to pull off a weekly close above $60,600.

Interestingly, Bitcoin is close to challenging the downtrend line that has been pushing its price down for the past month and a half, added the trader. That’s the third attempt in three days, and the fourth time this month. The previous three attempts ended up with strong rejections.

As for what to expect in terms of price movements over the next few days, a fellow trader who goes by the handle Altcoin Sherpa highlighted that Bitcoin may carry out a bounce at the current price level. If a bounce happens now, BTC may begin a movement back to the $63,000 zone.