- Bitcoin has enjoyed a $5,000 bounce this weekend as Saxony sold its last bitcoin
- The cryptocurrency has seemingly bottomed at $53,500, having dropped $20,000 since March
- Equities have also reached all-time highs, and Bitcoin appears ready to catch up
Bitcoin enjoyed a $5,000 bounce this weekend as the German town of Saxony finally sold the last of its 50,000 BTC. Having seemingly bottomed at $53,500, representing a $20,000 drop from its March top, Bitcoin finally seems able to resume its bull run, with equities also seeing all-time highs. Assuming this is the start of something wonderful, what does Bitcoin need to do in order to reach the promised land?
Saxony Sales Drive $20,000 Drop
Bitcoin’s rise from $43,000 to $73,000 in the first three months of the year was driven almost solely by ETF hype and buying, leading to a 27% cool-off that saw it drop as low as $53,500 earlier this month:
Part of this collapse has been the actions of the German town of Saxony, which has been forced to sell 50,000 BTC seized in 2020, as well as the fear of MtGox creditors doing the same. While the latter is not a legitimate concern, the former certainly was, and those with deep pockets have made the most of the price drop; Bitcoin whales accumulated 71,000 bitcoins amid the fastest rate of Bitcoin stacking since April 2023.
Saxony has now sold all its coins, relieving the sales pressure and allowing Bitcoin to reverse two weeks’ worth of losses. The question now is, what does Bitcoin need to do to prove that this isn’t a temporary bounce?
Two Key Levels to Watch
There are two areas we can look at to answer this question. The first thing Bitcoin needs to do is break and hold $67,000, which has acted as resistance in April and more recently again in June:
If Bitcoin can manage this, then the next target is the $71,500 region, acceptance above which will see all-time highs almost guaranteed:
Were this to play out perfectly, we would see something like this:
Of course, Bitcoin could do the other thing, but given the strength it has shown in this bounce, we have to believe that the only way is up from now on.
