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Bitcoin Makes Sudden Comeback Towards $60,000 As German Selloff Fears Ease ⋆ ZyCrypto

Bitcoin price breaks new all-time high above $66,000 on record-breaking day

The crypto market saw a rally on Tuesday night, with Bitcoin (BTC) slowly breaching the $59,000 mark as fears from last week’s drop, sparked by concerns over potential selling by the German government, eased.

Bitcoin shows ‘first signs of stability’

On Tuesday, Bitcoin surged more than 4% to as high as $59,322 before pulling back slightly. The asset trades for $58,705 at the time of writing, according to data from CoinGecko.

There is optimism amid this state of affairs, especially after last week’s unprecedented crash that pushed BTC below the $54K level. One trader thinks Bitcoin is showing the first signs of stability.

In an X-post, trader Rekt Capital noted that BTC is approaching its previous “June downtrend” line, and this resistance will be tested if a bullish divergence scenario plays out. The crypto analyst also shared a chart of relative strength index (RSI) data, which, on daily timeframes, hinted at bullish divergence with the price.

Looking at the weekly chart, Rekt Capital stressed the importance of Bitcoin closing above $60,600 to regain strong upward momentum. “During this recent rally, BTC has a chance to reclaim $60,600 as support to confirm last week’s extended decline as a fakeout. Crucial days ahead,” the trader said.

Bitcoin Price Remains Unaffected as German Government Sell-Off Continues

The recent negative performance of Bitcoin and other cryptocurrencies has been linked to the German state of Saxony dumping confiscated assets and the ongoing distribution of Mt. Gox refunds. The now-defunct exchange Mt. Gox has begun repaying approximately $9 billion to creditors after 10 years.

German authorities transferred $900 million worth of BTC on Monday. That was followed by another $362 million worth of Bitcoin being transferred to Kraken and crypto trading desks on Tuesday. The German BKA has apparently transferred over 5,853 BTC so far on Wednesday.

So far, Germany has sold about two-thirds of its seized Bitcoin stash, leaving about $1.06 billion in stock, according to data from blockchain analytics firm Arkham Intelligence.

Meanwhile, only a few miners are profitable at current prices, creating a scenario that could indicate a “local bottom” for the leading cryptocurrency.

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