The U.S. is selling off 30,000 bitcoins!

Janak9955

The U.S. government has begun to transfer the 30,174 bitcoins seized from its dark web e-commerce site Silk Road to exchanges, which some believe is a prelude to selling and has caused panic. Funds like Ark Invest and Grayscale have sold off Bitcoin, causing its price to briefly drop to around $64,500.

Bulls: (1) Fidelity and Blackrock are continuously increasing their holdings of Bitcoin, with Blackrock adding 3,100 coins and Fidelity adding 1,100. (2) A mysterious address has been aggressively buying Bitcoin in increments of 100 coins, accumulating 2,170 during a four-day dip. Speculation suggests this could be a government buying in, with the potential intention to sell at a market peak. (3) USDT issued an additional 3 billion coins in four days, which historically has led to significant price increases.

Now, back to the charts. Looking at Bitcoin, on the daily chart, it's oscillating between two red rectangles ($60,000 and $72,000), with the volatility gradually narrowing, indicating an imminent direction choice. As the HSEMA9 approaches the blue EMA18, a death cross formation would disrupt the uptrend, potentially testing the lower red rectangle at $60,000. To avoid a death cross, Bitcoin needs a quick rebound. A rebound would only confirm a higher high if it breaks above the green zone at $71,300, marking an end to the downward trend. Failure to hold $71,300 would likely lead to retesting $60,000 soon. If $60,000 fails, the area between $53,000 and $50,000 is significant support, with $30,000 seen as the worst-case scenario by some, which I personally disagree with.

On the 4-hour chart, the situation is consistent with the daily chart, with the EMA200 forming strong support, having been tested four times and leading to rebounds. However, repeated testing of support increases the probability of a breakdown. Therefore, if Bitcoin fails to reclaim $71,300 quickly, breaking below the EMA200 is only a matter of time, and the next step would be observing its performance at $60,000.

Considering the five-month consecutive rise in the U.S. stock market signaling a short-term top and the possibility of the U.S. selling off 30,000 bitcoins, I am currently bearish and believe Bitcoin will revisit $60,000 at least.

Jiger955

Bitcoin is also worth paying attention to.

Yamini003

If there's a lot of selling, it means the price is going down.