Bitcoin Clings to $119,000 amid New Galaxy Digital Sell Signals

BITCOIN (BTC) staged a recovery back above the $119,000 threshold Tuesday after a routine dip, following news of another significant BTC outflow from Galaxy Digital, reports Cointelegraph. However, this transaction prompted no significant price reaction, marking a shift from the heightened sensitivity observed last week regarding early Bitcoin sales.

Key Developments

• Bitcoin dipped to around $117,000 Monday before rallying back towards $119,000.
• This movement closed a gap noted in CME Group’s Bitcoin futures contract, a pattern observed over the past five weeks.
• Galaxy Digital’s recent withdrawal of 3,782 BTC from its ‘sacred’ wallet appears to have minimal immediate impact on the BTC/USD pair, which climbed nearly 1% from Monday’s lows.
• Last week’s massive 80,000 BTC sale via Galaxy triggered more pronounced selling pressure, briefly pushing BTC below $115,000.

Bulls Retake Ground

Market participants seemed to have absorbed the “OG” (original) Bitcoin selling pressure following last week’s large 80,000 BTC transaction. Despite the Galaxy Digital transfer, with data suggesting most of the sold BTC was sent to exchanges, bulls successfully defended key support levels, targeting the recent resistance zone around $119,000.

Analysis: Is This Another “Flash Sale”?

While Galaxy Digital’s role as a potential intermediary for large BTC sales remains a factor monitored by traders, its impact appears diminished compared to the colossal transaction earlier in the week. Market fatigue might be contributing to reduced volatility from confirmed sales events after the initial shock.

Technical indicators present mixed signals:

• The persistent closure of the CME gap suggests strong buying interest returning mid-week.
• The 21-day simple moving average (SMA) provides near-term support around $117,480, below which analysts warn of an increased potential for “flash sales” or sharp corrections.

“The longer this goes on, the more of a self fulfilling prophecy it will become.”

Material Indicators indicated Tuesday that while volatility was heating up near the monthly close, Trend Precognition suggested an immediate new high was less likely if the $117,480 support was breached.

Beware of Bearish Divergences

However, not all sentiment is bullish. Wary observers point to developing bearish divergences across key price indicators, with some suggesting a more significant pullback could test $108,000, or consolidation between $108,000 and $115,000.

“Likely going to see a 108k pullback OR we consolidate between here and 115k to sort them out.”

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.