Published on juli 14, 2024, 12:25 am
Image source: Fox News
```json [ { "TLDR": "Bitcoin's recent price surge to $58,885 on July 13 is driven by the German government nearly depleting its BTC reserves and a weakening US dollar. Institutional investors leveraged the market dip to accumulate Bitcoin while a cheaper dollar led investors towards riskier assets like cryptocurrencies. Despite challenges, Bitcoin is rebounding technically with a potential target of $59,000 followed by $61,235 in July if it surpasses key resistance levels." } ] ```
Bitcoin’s resurgence is currently being fueled by two significant factors: the German government depleting its BTC reserves and a weakening US dollar. The recent upswing in Bitcoin’s price, which has soared by about 1.70% to approximately $58,885 on July 13, can be attributed to these key drivers.
The German government has nearly exhausted its total holdings of 70,000 BTC, with only around 9,100 BTC remaining after offloading over $2.5 billion worth of Bitcoin since June 17. As a result, Bitcoin experienced a decline of roughly 12.70%, followed by a notable recovery exceeding 10% over the past eight days.
While retail investors may have been shaken during this period, institutional players took advantage of the market dip to accumulate substantial amounts of Bitcoin between 1,000 and 10,000 BTC. This surge in whale activity suggests confidence in Bitcoin’s long-term potential despite recent market fluctuations.
Simultaneously, the weakening US dollar has contributed to Bitcoin’s positive trajectory. The US Dollar Index (DXY) dropped around 0.90% in a week to hit approximately 104 on July 12, marking its lowest level in about five weeks due to rising speculations around an interest rate cut in September and concerns regarding the mounting US government deficit.
A cheaper dollar often prompts investors to seek higher returns in riskier assets like cryptocurrencies and stocks. This shift towards alternative investments explains why Bitcoin has managed to strengthen despite challenges such as the German government’s BTC sell-off and the ongoing process of reimbursing Mt. Gox clients with over 140,000 BTC.
Technically speaking, Bitcoin’s current price rebound seems to be part of an oversold bounce based on its relative strength index (RSI). The buying sentiment near the lower trendline of Bitcoin’s consolidation pattern indicates a potential upside target of around $59,000, coinciding with its descending trendline resistance.
If Bitcoin manages to break above $59,000 successfully, it could aim for the 200-4H exponential moving average (200-4H EMA) at roughly $61,235 in July—a gain of about 4.65% from current levels.
It is crucial to note that this article does not provide investment advice or recommendations. Investing in cryptocurrencies involves risks, and readers are encouraged to conduct thorough research before making any financial decisions within this volatile market.
Original article posted by Fox News
