Bitcoin bottom closer as German government runs out of BTC to sell, ETFs see highest inflow in five weeks


  • Bitcoin recovers from selling pressure as the German government runs out of BTC to sell. 
  • Spot Bitcoin ETFs recorded $310 million in inflows on July 12, led by BlackRock and Fidelity. 
  • BTC trades above $58,000 on Saturday, sustaining gains from earlier in the week.

Bitcoin (BTC) is recovering from the crumbling selling pressure of German government BTC transfers, sustained above $58,000 on Saturday, July 13. Another key market mover, Bitcoin ETF inflows, hit the highest level in five weeks on Friday. 

$310 million in funds flowed into Bitcoin Spot ETFs. 

Bitcoin rallies as selling pressure fades

Data from Arkham shows that the wallet used by the German government to transfer BTC is now out of funds. The wallet sent 3,846.05 BTC worth over $223 million to the trading firm Flow Traders, and 139Po (the firm marks this as a likely OTC service or institutional deposit), late on Friday. 

The wallet address has emptied its coffers, with zero Bitcoin balance. 

BTC

German government Bitcoin wallet 

The transfers by the German government were contributing to the selling pressure on the largest asset by market capitalization. As the balance dips to zero, the selling pressure is expected to ease and make way for recovery in Bitcoin price. 

Bitcoin sustained its recent gains and stayed above $58,000 on Saturday. At the time of writing, Bitcoin is trading at $58,142. 

Data from Spot Bitcoin ETFs shows an inflow of $310 million on July 12, largely driven by BlackRock and Fidelity. The inflow was the highest recorded in the past five weeks. This supports the bullish thesis for Bitcoin.

Bitcoin traders have observed the asset becoming key to the US Presidential election and politics. According to recent reports, Senator Cynthia Lummis shared her positive view on Bitcoin. 

Senator Lummis says Bitcoin reserve can help the US Dollar remain strong

During a Fox Business interview on July 12, Senator Cynthia Lummis made a statement supporting Bitcoin. Senator Lummis said that having Bitcoin in reserve could help the US Dollar remain strong and this is part of her vision for a financially sovereign America. 

Senator Lummis said,

Having Bitcoin in reserve can help the US dollar remain strong.

The positive developments could support BTC in extending gains in the coming weeks. 

What to expect from Bitcoin price

Bitcoin could extend gains by nearly 9% and rally to key resistance at $63,631. This coincides with the 50% Fibonacci retracement level of Bitcoin’s decline from its March 14 top of $73,777 to the July 5 low of $53,485, as seen in the BTC/USDT daily chart below. 

Bitcoin faces resistance at the upper boundary of the Fair Value Gap (FVG) at $59,400 and $63,288. It's likely that Bitcoin has found a bottom on July 5 and the asset could extend gains.

The Moving Average Convergence Divergence (MACD) indicator flashes green histogram bars above the neutral line, supporting the positive underlying momentum in Bitcoin. 

BTC

BTC/USDT daily chart

Bitcoin could find support at $56,771, the upper boundary of the FVG below the current price. The July 5 low of $53,485 could act as support in the event of a steep correction in BTC. 


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