Bitfinex Analyst: Don't panic about Bitcoin selling pressure in Germany, indicators suggest BTC may have hit bottom

This site (120BTC.coM): Bitcoin fluctuated repeatedly yesterday, with both longs and shorts killing due to multiple factors such as the Mt. Gox exchange starting to repay creditors' funds and the United States and Germany selling Bitcoins.

At the time of writing, BTC was trading at $57,190, up 4.85% in the past 24 hours. Since around US$58,000 is the stop-loss point for many short sellers, if it can be successfully broken through, there may be a short-term rise.

Bitcoin trend. Picture source: OKX spot

Bitfinex: Bitcoin may have hit bottom

Due to last night’s insertion, some investors blamed the German government for transferring thousands of Bitcoins, and the market is paying close attention to whether it will continue sell. However, analysts at the exchange Bitfinex pointed out in the latest research report yesterday (9th) that according to last weekend’s data, Bitcoin may have bottomed out.

Analysts pointed out that one of the reasons is that although the German government has frequently transferred cryptocurrencies to exchanges recently, overall, the Bitcoin transferred out by German and other governments only accounts for a large part of the Bitcoin trading volume since 2023. Less:

In comparison, governments including Germany and the United States have seized and sold Bitcoin worth only $9 billion. This amount only accounts for 4% of the total Bitcoin transaction volume in 2023. %.

While it may seem like a lot, the amount of Bitcoin they actually transferred to exchanges was only a few hundred million dollars, suggesting that government seizures of Bitcoin actually had a relatively small impact on the market.

SOPR indicator and funding rate show that the market may be at the bottom

In addition, Bitfinex analysts added that SOPR (spent cost profit margin) and the current negative funding rate also indicate that Bitcoin may be in the bottom in the near future A rebound occurred:

As of July 6, the SOPR for short-term holders reached 0.97, indicating that they did not sell at a loss.

The funding rates of all Bitcoin perpetual contracts also became negative for the first time starting from May 1st.

Historically, negative funding rates coupled with low short-term SOPR usually indicate that the market is at the bottom of a price correction. A negative funding rate can indicate heavy selling pressure or sellers dominating the market, but it can also indicate an oversold market. When this oversold condition coincides with a recovery in SOPR, it usually indicates that the market is bottoming.

Bitcoin whales have increased their long positions by 10,000 BTC

According to CryptoSlate reports, Bitcoin whales on Bitfinex have also increased their long positions by 10,000 BTC during the market correction period from June to now. It may indicate that the market may rebound.

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