Bitcoin Price Rejects $62,000 as Germany Govt Moves to Sell $2.8 Billion BTC

Bitcoin made a false start to the week, falling below the $60,000 level for the first time in over 50-days. Technical analysis indicators suggest that bears could mount major resistance at the $62,300 level in the week ahead. 

BTC Price Stalls at $61k as German Authorities Move Part of $2.8 Billion Bitcoin Stash to Exchanges

After a torrid start to the week, Bitcoin price closed Saturday, June 29 around the $61,000 territory.  But despite the 4% rebound toward the end of the week, bearish events surround sell-offs from Mt Gox creditors, and Germany authorities could keep BTC from advancing further in the week ahead

As seen in the chart above, Bitcoin price feel to 50-day low of $58,500 on Monday June 24. But since then, bulls sprung into action to stage a 5.4% rebound to reclaim the $65,000 territory as of the time of publication on June 30.

Notable, Mt. Gox creditors who received repayments after more than a decade of a protracted legal battle had been pivotal to the bearish downswing observed at the start of the week.

Impending sell-offs from German authorities could trigger a similar reaction in the week ahead.

The German Federal Criminal Police Office (BKA) transferred $24 million in Bitcoin to cryptocurrency exchanges Kraken and Coinbase, following a series of similar transactions totaling $195 million on June 19 and 20.

The BKA also moved an additional $30 million worth of BTC to a currently unidentified wallet, according to data from Arkham Intelligence, which shows that the government’s wallet still holds 46,359 BTC worth over $2.8 billion.

While the purpose of these transfers remains unclear, analysts speculate they may be a prelude to a sale. The potential impact on the market is expected to be minimal, as the $24 million figure represents a fraction of Bitcoin’s daily trading volume.

The BKA’s Bitcoin holdings originated from the 2013 seizure of nearly 50,000 BTC from the operators of Movie2k.to, a now-defunct film piracy website.

If the sell-off ensues as feared, Bitcoin price could struggle to break above the critical resistance cluster around $62,000 in the week ahead.

Bitcoin Price Forecast: $62,300 is the Major Resistance to Watch

Bitcoin price has reclaimed the $61,500 level at the time of writing on June 30 however, impending sell-offs from German authorities could hamper the chances of further upside.

IntoTheBlock’s In/Out of the Money Around Price (IOMAP) data which groups existing Bitcoin holders by their entry prices also affirms this bullish stance.

It shows that 1.39 million addresses had acquired 431,540 BTC at the average price of $62,258. If the opt to book profits to avoid the negative impacts of the German government’s impending sell-off, BTC price could struggle to break above the $62,300 level in the week ahead.

But on the downside, Bitcoin price could find short-term support at the $59,600 level as buyers looking to ape in before the next bullish phase continue to pile on fresh demand.

In essence, Bitcoin price looks poise to consolidate within the $59,500 – $62,300 channel for the better part of the coming week.