Bitcoin appears to have found support from the $60,000 psychological level as overbought conditions set it.
BTC price has been in a downtrend since June 6, dropping 19% from a high of $71,974 to a low of $58,414 on June 24. The big crypto lost key support levels during this sell-off, including all the major moving averages, the psychological levels at $70,000, $68,000, and $65,000.
Several factors have accelerated Bitcoin’s drawdown over the last few days. On June 19, the German government began a massive Bitcoin sell-off. Arkham Intelligence said Bitcoin wallets connected to the German government moved nearly 6,500 BTC on June 19.
This is part of a Bitcoin stash seized from the operators of a movie piracy website. This move is part of a recent trend of large-scale Bitcoin transactions by German authorities, with substantial funds being transferred to major exchanges like Coinbase, Kraken, and Bitstamp, hinting at further sales.
The nearly 50,000 Bitcoin, originally seized from the operators of Movie2k.to, a film piracy site last active in 2013, were handed over to the German Federal Criminal Police Office (BKA) in January following a voluntary surrender by the suspects.
Also adding to the sell-side pressure is the payments from the defunct crypto exchange Mt. Gox to its creditors planned for next month. The collapsed Japanese crypto trading platform has said that beginning in July 2024, it would start distributing recovered Bitcoin (BTC) and Bitcoin Cash (BCH) to creditors.
