On July 12, the X social network was in uproar after multiple on-chain data outlets and independent analysts announced that the balance of the German government’s Bitcoin wallet had reached zero, with some in the group suggesting that Bitcoin (BTC) prices would surge as the supposed selling pressure had been removed from the market.
Despite the news, Bitcoin price remains stuck in a tight range with resistance at $60,000 and support at $54,000.
Let’s take a look at some of the technical factors behind Bitcoin’s recent price movements.
Bear flag persists and resistance at $60,000
Bitcoin’s drop from $60,000 confirmed an M-top (or double top) and established a bearish continuation pattern. Notice that the downtrend accelerated with increasing selling volume, while any breakout attempts to the upside were suppressed by low buying volume.
Ideally, traders would like to see this pattern broken by a strong, high volume push above the $60,000 level, where the 61.8% Fib retracement level lies, followed by several daily candles closing above $60,000 and establishing support at or above this level.
Bitcoin order book depth and liquidation levels
In cryptocurrencies, prices tend to move in the direction of the most liquidity. 
BTCUSD It is clear that the volume profile for Bitcoin’s order book depth is in the 2% to 5% range, with the price fluctuating between bid prices around $54,000 to $57,000 and a sell order block of $60,000.
The liquidation map shows that leveraged traders opened large amounts of long positions near the $56,500 level, so things could get complicated if the price falls below that level and the current bear continuation pattern holds.
Market participants’ expectations that Bitcoin price may achieve a trend reversal now that the German government has completed its BTC sale are likely to be a new talking point in the crypto media, while the imminent threat of a partial sale and return of the 140,000 Bitcoin recently redeemed by Mt. Gox customers could be the next selling pressure event that will either consolidate the price within the current range or even push it down to the M-top target of $44,000.
This article does not contain any investment advice or recommendations. Any investment or trading involves risks and readers should conduct their own research when making any decision.
