German Government Accumulates Bitcoin as Lunar Cycle Hints at Potential Rally

Bitcoin’s price has been on a downward trend lately, but recent data suggests that the cryptocurrency may be due for a reversal. Two key data points have emerged that could signal a potential price comeback.

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Bitcoin Price in Focus as German Government Accumulates After Dip

Based on the data from on-chain analysis platform Arkham, the wallets tagged as “German Government” have accumulated nearly $21 million worth of Bitcoin in the past 24 hours. This move coincides with a broader market correction that saw Bitcoin’s price fall sharply on Thursday. Bitcoin price currently trades at $63,640 after shedding 1.86% on Friday. The German government’s purchase has been interpreted by some analysts as a potential “buy-the-dip” strategy, indicating confidence in Bitcoin’s short and long-term prospects. It follows the U.S. SEC’s approval of Bitcoin-related products, which has fueled institutional interest in the cryptocurrency in recent months.

“While the German government’s move is certainly interesting, it’s important to remember that the cryptocurrency market is still in its early stages and prone to significant fluctuations,” said a spokesperson for CoinMarketCap, a leading cryptocurrency data provider. “Investors should always conduct their own research and understand their risk tolerance before entering the market.”

Full Moon Phenomenon Influences BTC

Adding another layer of intrigue is the historical correlation between full moons and Bitcoin price movements observed in 2024. Notably, five out of the six full moons this year have preceded price rallies, with the average increase exceeding 23%. With a full moon expected tomorrow, some analysts are cautiously optimistic about a potential short-term surge in Bitcoin’s price.

“The full moon effect on Bitcoin prices is a fascinating phenomenon, but it’s important not to overstate its significance,” said Dr. Amelia Johnson, a professor of finance at the University of Frankfurt. “While there may be a correlation, it’s not a guaranteed predictor of future price movements.”

As seen in the below chart, investors should consider the possibility of Friday’s low could lead to a bottom formation. A reversal from here could see BTC tag the area of interest at $71,981. It is also like Bitcoin price could sweep the current all-time high of $73,949 and set up a new one at $80,000. This move would lead to a breakout from the ongoing rangebound movement between the $73,949 and $60,760 levels.

The coming days will be crucial in determining the impact of the German government’s purchase and the full moon on Bitcoin’s price. Investors are closely monitoring the market, waiting to see if these developments will trigger a significant price reversal or if the recent downward trend will continue.