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Bitcoin Could See Short-term Bullish Trend and Reclaim $60k If This Happens

Bitcoin continues to trade below $58k. This is soon to change if this factor take effect.

Bitcoin Price Surge

The German govt continues to dump its BTC. Its latest selloff transferred 9,634 bitcoin to several exchanges, including Kraken, Coinbase, and Bitstamp. The newest transfer brings its total to 24,304, which is $1.44 billion since June 19. Nonetheless, the government still holds 28,988, $1.66 billion. It continued selling as it transferred another 5,200 BTC to other exchanges.

Other whales joined in on the selling frenzy. One such deposited 5,281 BTC worth $323 million on July 8. The same entity deposited 1,800 and is in notable losses. The whale has sent 24,240 BTC to the exchange since June. The intentions remain unclear, and many analysts speculate there will be an impending selloff.

Bitcoin is Recovering

Amidst the excess supply, the bulls are gradually soaking up the supply. The coin surged to a high of $58,200 but retraced to a low of $54,296. It rebounded and closed a little higher than its opening price. The price improvement is ongoing, with the asset aiming for $58k.

On-chain data supports this claim. According to CryptoQuant, the amount of BTC in the exchange reserve decreased by a small fraction in the last 24 hours. This also accounts for the ongoing price increases the coin is seeing at the time of writing. The bullish trend continued on the seven-day scale as the reserves reduced by over 2%.

However, exchange netflow has yet to turn positive as the selloff continues. It increased by over 119% in the last 24 hours, indicating a massive increase in deposits into exchanges. The consistent increase also reflected in the weekly scale.

Nonetheless, the Miners’ Position Index suggests that miners are still selling and may continue this trend until they are exhausted. From all indications, the selling may last the entire week as the German government ramps up its efforts to dump its remaining holdings.

BTC Will Flip $60k

The moving average convergence divergence is still bearish. Nonetheless, it is gradually becoming positive. The 12-day EMA halted its downtrend and is slightly arched upwards. With the trajectory of the 26-day EMA, a bullish convergence could be underway if the slight price increases continue. It is also worth noting that MACD’s histogram is also reducing.

The coin closed the previous day below its first pivot support. It has since reclaimed it but is struggling to keep prices above it. Nonetheless, the apex coin has traded around this mark over the last five days since flipping it.

With the ongoing price struggle, the bulls are looking to continue the uptrend, following several on-chain indicators that are flipping bullish. It is worth noting that BTC is also trading below a short-term resistance and will flip it if the uptrend continues.

Bitcoin registered highs above $58,000 consecutively for the past three days. It also edged close to the mark a few hours ago but suffered the same trend.

Previous price movements suggest BTC will return to $60 by flipping this mark. For example, after breaking $58k, the largest cryptocurrency continued its surge until $64k. A similar occurrence happened in May when the top coin peaked at $62k after breaking this resistance.

The Fibonacci retracement level suggests that the apex coin may hold steady above $60k once it reclaims it. The 50% fib level is at $57k, which indicates moderate demand concentration. Following this mark is the 38% retracement level at $60,986. With prices above 50%, the bulls will look to reclaim 38%.

The expected bullish trend may happen this week. Rumors suggest that some exchanges are no longer fulfilling Germany’s sell orders. If this holds true, the government may decide to sell the rest of its holdings off market.

Additionally, the fear and panic that once spread every time the entity transferred bitcoin are slowly dissipating. With traders moving off the era of panicking, notable surges will follow.

Gideon Geoffery