Bitcoin Price Leads Altcoins in Rebounds as German Government Accumulated Back 3.6K BTCs

UTC by Steve Muchoki · 3 min read
Bitcoin Price Leads Altcoins in Rebounds as German Government Accumulated Back 3.6K BTCs
Photo: Depositphotos

The heightened crowd fear could lead to a sudden Bitcoin and altcoin price rebound in the near term despite the ongoing Mt. Gox repayments.

The total cryptocurrency market cap surged more than 3 percent in the past 24 hours, led by Bitcoin (BTC) to hover around $2.21 trillion on Tuesday, during the London session. Bitcoin price has formed a possible reversal pattern, which could yield a fresh bull run in the near term.

Moreover, Bitcoin price has historically rebounded every time the crowd has depicted fear, uncertainty, and doubts (FUD).

Bitcoin’s fear and greed index dropped further towards 27 percent on Tuesday, up from 44 percent last week, thus signaling further fear.

German Government Changes Bitcoin (BTC) Trading Tactics

Bitcoin price has been under immense pressure in the recent past from heightened on-chain activities from whale addresses. In the past 20 days, a Bitcoin address associated with the German government has offloaded more than 23k Bitcoins and currently holds about 27,461 coins. On Monday, the German government sent shockwaves to the entire industry after transferring around 19,521 coins, worth around $1 billion to wallets belonging to different over-the-counter (OTC) firms led by Flow Traders, and Cumberland.

However, the sentiment changed after the German government received 3,673 Bitcoins from centralized exchanges.

Mt. Gox Distributions Fades with Rising Demand for Spot BTC ETFs

The cryptocurrency market has also experienced notable bearish sentiments fueled by Mt. Gox’s $9 billion repayment. However, some analysts believe the Mt. Gox fund distribution will gradually fade away in the near term as most recipients are already long-term holders.

As Coinspeaker reported, the US spot Bitcoin ETFs registered nearly $300 million in cash inflows on Monday led by BlackRock’s IBIT. Remarkably, none of the US spot Bitcoin ETFs on Monday registered net cash outflows, thus signaling rising Bitcoin demand from institutional investors.

The demand for Bitcoin among institutional investors is thought to be fueled by the upcoming interest rate cut amid the general elections. Furthermore, the Fed has remained dovish in the recent past amid the declining inflation.

Midterm BTC Price Expectations

Bitcoin price has been consolidating in the past four months, despite the reduced inflation due to the recent fourth halving event. From a technical perspective, Bitcoin price must consistently close above the 200-day Moving Average (MA) in the coming weeks to invalidate further capitulation.

Currently, Bitcoin price continues to hover around the lower border of a falling channel that began four months ago. The daily Relative Strength Index (RSI) has been hovering around the oversold levels in the past few weeks, signaling a possible reversal in the near term.

According to analysis provided by Spot On Chain, Bitcoin price is on the right path towards $100K by the end of this year.

Bitcoin News, Cryptocurrency News, News
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