German Government Sells Half of Bitcoin Holdings Amid Market Absorption and Potential Revival Signals

The German government has sold more than half of its entire Bitcoin ($BTC) holdings, transferring $900 million worth to exchanges on Monday. Despite this significant selling, Bitcoin has absorbed the impact and started to rise on Tuesday. Technical indicators suggest the possibility of a Bitcoin revival underway. Even with more than 23,000 $BTC still in its possession, the German government appears determined to liquidate its holdings at current low prices, raising questions about its intentions behind this selling spree. The selling is expected to continue, requiring Bitcoin bulls to consistently buy the assets being sold by the German government. Institutional buying seems to be absorbing large amounts of $BTC hitting the exchanges.

While Bitcoin remains below the 200-day exponential moving average (EMA), indicating a bearish trend, it is currently attempting to break through weaker resistance at $67,000. A successful breach could lead to a retest of stronger resistance at $58,000, aligning with the 200-day EMA level. On the weekly timeframe, visible resistances could potentially reject any rally, possibly leading Bitcoin to succumb to selling pressure as bulls contemplate a potential early bear market.

Despite these challenges, there is a promising indicator favoring Bitcoin—the stochastic RSI, visible at the bottom of the chart. A current upward cross of this indicator, occurring approximately every six months, could provide significant momentum to propel Bitcoin back into a bullish trend. Notably, a previous false signal occurred in early June, but the double bottom pattern on the stochastic RSI weekly chart is considered highly significant and could serve as a powerful catalyst for Bitcoin's momentum. This marks a potential beginning for Bitcoin's revival.