Bitcoin (BTC) is lingering at $58,200, and altcoins are relatively calm. So, is the decline over? Cryptocurrency investors have been pressured by Germany’s sales and MTGOX FUD since June. In a short period, the German government sold roughly 50,000 BTC, having a significant impact.
Have Cryptocurrencies Hit the Bottom?
The German government’s wallet has been closely monitored by investors for a month. About three weeks ago, the wallet contained 50,000 BTC seized this year. However, at the time of writing, only 3,856 BTC remained. Although the recent sales prevented the leading cryptocurrency from surpassing $60,000, only $223 million worth of sales risk remains, which the market can tolerate.
In its last transfers on July 12, the wallet sent 800 BTC to the Kraken exchange, 500 BTC to the “bc1q” wallet, and 1,000 BTC to the “139p” wallet. The assets seized in February were the proceeds from the pirate movie site Movie2k. With these sales ending and signals that MTGOX refunds will be slower than feared, cryptocurrencies may now rise.
Many metrics already indicated a bottom for BTC. The daily RSI, which saw oversold dips, and the investor sentiment, which fell to extreme fear levels, have historically been good at identifying bottoms.
Will Cryptocurrencies Rise?
The trend is still on the rise, and demand from investors in the ETF channel continues. These factors suggest that the rise in crypto will begin soon. On the other hand, renowned cryptocurrency analyst Moustache used the Wyckoff method, one of the common technical setups, to predict a new move to $60,000.
“I think we will see $BTC above $60,000 again very soon.”
Another analyst, Marty Party, confirms that many indicators, including the Coinbase Premium, point to a price bottom. This data, reflecting the interest of US investors in BTC compared to the rest of the world, indicates that demand is starting to revive in the US.
In the short term, bulls need to see closures above $56,750. However, some analysts worry that the consolidation process may continue if $58,350 is not reclaimed on the daily chart.
