As Investors Prepare for the Upcoming Sell-Off, a Negative Effect on Bitcoin Is Imminent

The U.S. Government has expressed considerable skepticism about the prospects for Bitcoin and the cryptocurrency market as a whole. This occurs as a result of legal problems, fraud, and hacking thefts. The U.S. Government has expressed worries over these vulnerabilities, casting doubt on Bitcoin’s potential and initiating a strategy to sell off a portion of its Bitcoin holdings at a time. On March 14 of this year, there was the initial sell-off.

These holdings, which total 41,491 BTC, were initially obtained as a result of the Bitfinex breach, the Mt. Gox scandal, and the James Zhong Bitcoin seizure. The remaining holdings are planned to be sold off in four batches. As per Maartunn’s calculation, should the selling pattern remain consistent, the next sell-off will be in May. A negative effect is imminent due to the expectation and aftermath of the upcoming sell-off.

Key Bitcoin Levels To Watch – April 16

The successful breakout from the $19569.0 support to the downside led to the final wave of the preexisting downtrend. The downtrend came to an end when the price bounced off the $15460.0 demand level. The bulls stormed the market at the $15460.0 demand level, thereby causing a massive expansion to the upside.

However, the price entered an overbought state in February 2023, according to the RSI indicator. This led to a correction, which tapped into a liquidity pool before the resumption of the uptrend. A liquidity void was created as the resumption ensued. Due to the selling pressure at the $31050.0 resistance level, BTCUSD is likely to experience a massive crash until the liquidity void is filled.

BTC Key Levels

Resistance Levels: $31050.0, $32933.0, $37401.0
Support Levels: $25289.0, $19569.0, $15460.0

Total Market Capitalization: $1.28B
Bitcoin Market Capitalization: $586.56B
Bitcoin Volume: $11.4B
Market Rank: #1

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