2024

Bitcoin

Impact

HZM Coin

Bitcoin's (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) comeback from its five-month low is still gaining momentum on July 13, with the cryptocurrency rising approximately 1.70% intraday to around $58,885. 
Driving this resurgence are several key factors: the German government's near liquidation of its total 70,000 BTC holdings and a weakening US dollar amid a growing deficit.
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 <img src="https://s3.cointelegraph.com/uploads/2024-07/ca101bc9-c5d5-4422-aa60-492fea635a54.png" alt="Why is Bitcoin price up today?" title="">
 <figcaption style="text-align: center;">
 BTC/USD four-hour price chart. Source: <a href="https://www.tradingview.com/symbols/BTCUSD/?exchange=CRYPTO" target="_blank" rel="noopener nofollow">TradingView</a>
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<h2 id="bitcoin-investors-absorb-nearly-2-5b">Bitcoin investors absorb nearly $2.5B</h2>
The German government has <a href="https://platform.arkhamintelligence.com/explorer/entity/germany" target="_blank" rel="noopener nofollow">approximately 9,100 BTC left</a> after selling over $2.5 billion worth of BTC since June 17. During this period, Bitcoin's price dropped by about 12.70%, followed by a notable recovery of over 10% in the past eight days.
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 <img src="https://s3.cointelegraph.com/uploads/2024-07/cf6523e4-c48d-4631-99cb-e3e5ee90a2f6.png" alt="Why is Bitcoin price up today?">
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 Bitcoin balance in the German government's BTC wallet. Source: Arkham Intelligence
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In contrast, institutional investors have been <a href="https://cointelegraph.com/news/buying-the-dip-bitcoin-institutional-investors-add-100k-btc-week">buying Bitcoin at its local dips</a>, according to&nbsp;Cauê Oliveira, an analyst tied to on-chain data service CryptoQuant.
In a <a href="https://cryptoquant.com/insights/quicktake/668fbde11fe1d9469fe41c95-The-second-largest-institutional-accumulation-process-of-2024" target="_blank" rel="noopener nofollow">Quicktake blog post</a> on July 11, Oliveira cited a rapid increase in wallet balances holding between 1,000 and 10,000 BTC since June’s beginning, including when the German government was selling BTC.
Notably, the cohort added over 10,000 BTC worth $5.7 billion during the period, aligning with BTC’s 23% price decline. This raises anticipations that these so-called "whales" have been buying the Bitcoin dip below $60,000.
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 <img src="https://s3.cointelegraph.com/uploads/2024-07/4b30bda1-a071-4665-a1d2-c3b2401fc963.png" alt="Why is Bitcoin price up today?">
 <figcaption style="text-align: center;">
 Bitcoin total balance and balance change of large holders (1K-10K balance). Source: CryptoQuant
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“While many novice investors capitulated last week, particularly those who bought coins between one and three months ago, institutional players engaged in the largest accumulation process since March,” Oliveira summarized.
This data hints at <a href="https://cointelegraph.com/news/bitcoin-bottom-german-gov-t-bitcoin">Bitcoin's potential of bottoming out</a> near its recent market lows at around $56,700.
<h2 id="dollar-dips-to-lowest-levels-in-over-a-month">Dollar dips to lowest levels in over a month</h2>
Bitcoin’s gains today and recently align with a depressive trend witnessed on the US dollar Index (DXY) chart.
Notably, DXY—a metric that tracks the dollar's strength versus a basket of top foreign currencies—<a href="https://cointelegraph.com/news/key-btc-price-levels-bitcoin-58k-sticky-us-ppi">dropped</a> 0.90% in a week to&nbsp;reach around 104 on July 12, its lowest level in about five weeks. This decline followed <a href="https://cointelegraph.com/news/bitcoin-price-struggles-as-investors-expect-fed-interest-rate-cuts-why">bond traders' rising bets</a> on an interest rate cut in September.
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-07/6e1d2204-4ddf-4fce-b9f6-7b11fcbe99e8.png" alt="Why is Bitcoin price up today?" title="">
 <figcaption style="text-align: center;">
 DXY daily performance chart. Source: <a href="https://www.tradingview.com/symbols/TVC-DXY/" target="_blank" rel="noopener nofollow">TradingView</a>
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DXY faced further downside pressure against the prospects of a mounting US government deficit; it <a href="https://www.bloomberg.com/news/articles/2024-07-11/us-deficit-reaches-1-27-trillion-in-fiscal-year-to-date" target="_blank" rel="noopener nofollow">reached</a> $1.27 trillion year-to-date until June.
Lower interest rates and a higher deficit can weaken the dollar because they raise the potential for increased borrowing and&nbsp;concerns about the government's financial health, which can dilute the value of the currency.&nbsp;
A cheaper currency typically prompts investors to seek returns in riskier assets, including stocks and cryptocurrencies. 
Related:&nbsp;<a href="https://cointelegraph.com/news/bitcoin-price-330k-this-bull-cycle-analyst">Bitcoin price will hit $330K this bull cycle — Analyst</a>
That explains Bitcoin's renewed strength despite mounting concerns related to the German government's BTC dump, as well as the ongoing reimbursement of over 140,000 BTC to Mt. Gox clients.
<h2 id="btc-price-technical-bounce">BTC price technical bounce?</h2>
From a technical perspective, Bitcoin's ongoing price rebound appears to be part of an oversold bounce.&nbsp;This is evidenced by its four-hour relative strength index (RSI), which recently dipped below the oversold threshold of 30—a level that often signals an impending recovery.
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-07/ae50fb82-f51e-4b58-a000-37232a3704e7.png" alt="Why is Bitcoin price up today?">
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 BTC/USD four-hour price chart. Source: TradingView
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Today’s gains stem from the buying sentiment near the lower trendline of Bitcoin's prevailing triangle-shaped consolidation pattern, as shown in the chart above. As a result, BTC’s immediate upside target is around $59,000, coinciding with its descending trendline resistance.
A clear break above $59,000 will put the 200-4H exponential moving average (200-4H EMA; the blue wave) in sight at around $61,235 in July, up by 4.65% from the current price levels.
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.

Why is Bitcoin price up today?

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