Bitcoin price experienced a decline on Thursday, influenced by ongoing negative sentiment within the crypto industry and substantial token sales by the German government. The BTC token dropped to $59,918, marking its lowest point since May 1st. This decline has pushed Bitcoin into a technical bear market, having fallen by 20% from its peak earlier in the week.

Peter Schiff, a notable figure in the financial industry and a known Bitcoin skeptic, issued another warning about Bitcoin’s potential decline. In a recent post, he highlighted the critical support level for Bitcoin and cautioned that a failure to maintain this level could result in a significant drop.

As you can see, Bitcoin is at critical support. If it doesn’t hold, look out below. It’s a long way down.

This perspective aligns with recent chart analyses, which identified $56,534 as a crucial support level. This price point is significant as it marks the neckline of the quadruple top pattern at $71,780 and aligns with the 200-day moving average. A breach of this support could see Bitcoin dropping to the psychological levels of $50,000 followed by $44,000.

German Sales and Miners Capitulation

The sell-off in Bitcoin intensified following on-chain data indicating that the German government continues to liquidate its Bitcoin holdings. Recently, it transferred 3,000 coins to major exchanges like Bitstamp, Coinbase, and Kraken. At current prices, this tranche is valued at over $174 million. The German government now holds 40,359 coins, worth over $2.3 billion, which it plans to liquidate.

Moreover, Bitcoin miners are also showing signs of capitulation by selling their holdings. Julio Moreno from CryptoQuant noted that miners might start liquidating if Bitcoin faces strong resistance.

Additionally, there are indications that the US government could sell Bitcoins worth over $9 billion. These coins are associated with Mt.Gox, an exchange that collapsed in 2014. This potential sale adds another layer of pressure on the market.

Bitcoin Balances in Exchanges Rising

Recent data shows that Bitcoin balances on exchanges have been increasing, signaling a possible rise in selling pressure.

The political landscape in the US also introduces some uncertainty. The consensus is that Joe Biden might step down, potentially being replaced by candidates like Kamala Harris, Gretchen Whitmer, Gavin Newsom, or Michelle Obama. These candidates are seen as having a higher chance of defeating Donald Trump, who is perceived as more crypto-friendly.

At the same time, Bitcoin’s open interest in the futures market continues to decline, which is viewed as a bearish indicator.

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