Only two days after presidential hopeful Donald Trump said at the Bitcoin 2024 conference that he would not move the US Silk Road $BTC, the government did just that, transferring $2 billion worth to a previously unknown wallet. Bitcoin lost 4% in value on the news.
Large $BTC movement sends traders into a panic
It seems that the crypto market has still not lost the jitters. Large amounts of $BTC being moved from one address to another is still able to cause flash panics that move the Bitcoin price appreciably.
Up until the moment that the US government decided to move a large parcel of $BTC from one wallet to another, seemingly without any rhyme or reason to it, Bitcoin had been coasting serenely upwards – to all intents and purposes on a collision course with the all-time high at $73,800.
However, that large movement of $BTC was enough to send investors and traders into a panic, and the $BTC price was sent scurrying back inside its bull flag like someone who walked out of their door on a sunny day, only to get hit with a rain storm even before they arrived at their garden gate.
No more major headwinds
Nevertheless, this large $BTC movement was probably just that, and the market possibly read too much into it. It is already known that the US Marshal’s Service has signed an agreement with Coinbase to custody all its large cap cryptocurrencies, so selling them soon afterwards would not make any sense.
Therefore, with the possible exception of some of the Mt. Gox distribution of $BTC being sold over the next few days, weeks, and months, there really aren’t any other major headwinds that are foreseeable – unless of course, the US economy tanks and the stock market crashes – the chances of which are becoming more and more of a possibility.
US $BTC move a coincidence?
Source: TradingView
Looking at the $BTC price for the short term, it can be seen that a series of higher highs has been taking place, which looked as though it was going to culminate in a break and retest of the bull flag upper trend line. However, just as $BTC perfectly touched the $70,000 price mark, the US government made its $BTC move, and sent the price crashing back down into the bull flag. Was this a complete coincidence? Only the US government will know.
When the price came down, it hit the support at $66,900, and then went back up to retest the bull flag trend line. A further dump took place, which then saw $BTC bounce from the 0.618 fibonacci.
Yet another fake-out is the result
So at the end of the day, another fake-out of the bull flag has occurred. From a technical perspective, it isn’t a good look, and the $BTC price will need to get back above that upper bull flag trend line once again, and this time hold firm.
On the other hand, if the price were to fall back below $63,300, a lower low would be made, and this would put Bitcoin’s bull market back into the balance. Very interesting times lie ahead.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
