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Bitcoin Rebound Is Coming! Key Levels to Watch
Friends, it looks like we are back in the fast lane. The cryptocurrency market has seen a significant surge, rising nearly 4 percent in the last 24 hours to reach about $2.21 trillion on Tuesday. Bitcoin (BTC) led this rally, even as medium-term uncertainty surrounding cryptocurrencies continued to fuel fear and pessimism. Despite a temporary rebound in BTC prices, Bitcoin’s fear and greed index fell to 27 percent.
Notably, the price of Bitcoin has risen more than 3 percent in the past 24 hours, settling at around $57,222 during the early European session on Tuesday.
What will be the future of BTC?
Bitcoin Reserves Change in Germany
THE German governmenta major Bitcoin holder over the past decade, has sold its Bitcoin in the past 20 days. After seizing nearly 50,000 coins from movie piracy site movie2k.to, Germany now holds about 27,461 Bitcoin, worth about $1.5 billion.
Using a combination of over-the-counter (OTC) options and centralized exchanges to settle its holdings, Germany has had a significant impact on the market’s bullish sentiment. On Monday, the country made its largest on-chain move, moving around 16,000 BTC (worth nearly $1 billion).
Shortly thereafter, Germany accumulated approximately 3,673 Bitcoin from centralized exchanges, worth approximately $207 million.
Mt.Gox Refunds Falling Impact
The negative impact of the Mt.Gox Refunds in the cryptocurrency sector has gradually declined in recent days. In addition, many investors receiving Mt.Gox funds are believed to be long-term holders, reducing immediate selling pressure.
FTX’s upcoming cash distribution of nearly $16 billion in Q4 is expected to increase overall cryptocurrency buying pressure, potentially mitigating the impact of any remaining Mt. Gox sell-offs.
Market Analysis and Forecasts
Amid heightened fear, uncertainty, and doubt (FUD) in cryptocurrencies, Santiment noted that the chances of a market rebound are high. From a technical perspective, Bitcoin has formed a bullish flag against the US dollar, indicating a potential surge towards $72,000 soon.
However, a consistent close below $53,000 in the coming weeks could amplify fear and trigger further crypto capitulation.
Read also: List of Top 3 Altcoins to Avoid This Season
Is the fear in the cryptocurrency market justified? Share your opinion on the current sentiment!