Cryptocurrency markets are abuzz with speculation as the US government recently took significant action against the infamous Bitcoin (BTC) confiscations linked to it. silk road Dark web marketplace. This development comes at a critical time for the Bitcoin price, which has struggled to maintain its position above $70,000 after hitting an all-time high (ATH) of $73,700 on March 14.
Another round as the largest cryptocurrency experience price correctionThis movement of seized funds has sparked intense speculation about a potential sale by the U.S. government.
Silk Road BTC seized in transit
According to Onchain dataA wallet linked to the U.S. government recently transferred 30,175 bitcoins seized from the Silk Road dark web marketplace.
The move follows the seizure of more than 50,000 bitcoins from James Zhong, who had acquired the cryptocurrency illegally on Silk Road in 2012. The seizure of these funds by the U.S. Department of Justice (DOJ) was the largest cryptocurrency seizure in history.
This is not the first time the U.S. government has moved Bitcoin obtained in a criminal case. In March 2022 government sale We plan to sell 9,800 Bitcoin and an additional 41,500 BTC. However, the recent transfer of 30,175 BTC from Silk Road-related addresses has raised questions about the fate of these funds and their potential impact on Bitcoin price adjustments.
On-chain data expert Benjamin Skew took to social media to suggest the following: insight to the situation. Skew said there was confusion surrounding Silk Road Bitcoin being transferred to Coinbase for sale, but closer examination revealed that the primary funds had been transferred to newly created wallets where they remained inactive.
However, Skew revealed that 2,000 BTC of the total amount was transferred to the alleged offender. coinbase wallet The remainder was transferred to a newly created wallet for undisclosed purposes.
200EMA support important for Bitcoin price
Bitcoin price is currently witnessing a lack of bullish momentum as the cryptocurrency continues to face resistance in consolidating above the critical $70,000 threshold. But there is still hope.
Cryptocurrency analyst Ali Martinez highlight Importance of the 200-period moving average (EMA) on the BTC 4-hour chart. According to Martinez, this indicator has served as strong support since early February and continues to play a key role in preventing further declines.
The focus on the 200EMA comes from its potential to fuel a rebound or trigger more losses for Bitcoin. Martinez said that if the 200EMA continues to hold strong support, this represents a significant odds. price rebound. This scenario would provide new bullish momentum and potentially push Bitcoin price above $70,000.
However, if the 200 EMA is broken in mid-January, as seen in the chart below, analysts suggest this could expose the Bitcoin price to further downward pressure, potentially leading to further losses.
Bitcoin (BTC) continues its recent price correction, trading at $65,390. Over the past 24 hours, BTC has experienced a 5% decline. There has been a significant decline of over 6% over the past seven days.
The market will be closely monitored to see whether the current key support levels can withstand further price declines or whether a potential bounce will occur before that point is reached. The outcome of these scenarios remains uncertain.
Featured image from Shutterstock, chart from TradingView.com
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Source: NewsBTC.com