As the US government has recently taken significant steps regarding the seizure of Bitcoin (BTC), which is linked to the notorious cryptocurrency, the crypto market is buzzing with speculation. Silk Road The dark web is a marketplace. This is a significant development for Bitcoin, which had been struggling to keep its price above $70,000 after reaching its all-time highest (ATH), $73,700 in March.
The largest cryptocurrency is experiencing yet another round. price correctionThe movement of the seized money has led to intense speculations about the potential sale by the US Government.
Silk Road BTC Seized on the Move
On-chain dataA wallet connected to the US Government recently sent 30,175 Bitcoins seized on the Silk Road dark-web marketplace.
James Zhong was previously arrested in 2012 after he illegally purchased Bitcoins on the Silk Road. This was the biggest cryptocurrency seizure ever made by the US Department of Justice (DOJ).
It isn’t the first time that the US Government has moved Bitcoins obtained in criminal cases. The US government will begin to move Bitcoin in March 2022. government sold 9,800 Bitcoin with plans to also sell 41,500 BTC. The recent transfer of 30,175 BTC to Silk Road addresses raised concerns about what would happen with these funds, and the potential effect on Bitcoin’s price.
Benjamin Skew is an expert in on-chain data and took to Twitter to share his thoughts. insights in the situation. Skew stated that despite all the confusion surrounding Silk Road Bitcoins being sold at Coinbase, the money was actually transferred into a wallet created recently that is inactive.
Skew claimed that only 2,000 BTC was sent to the accused. Coinbase wallet The money was used for an undisclosed purpose, and the remainder went to a new wallet.
200EMA support is crucial for the Bitcoin price
Bitcoin’s price has remained flat as it continues to struggle with resistance above the critical $70,000 level. But there’s still some hope.
Crypto analyst Ali Martinez highlights This chart shows the significance of the 200-epimetric Moving Average (EMA). Martinez says that this indicator, which has been a powerful supporter since February 1, continues to be a key factor in stopping further declines.
Focus on the 200EMA is due to its potential for either triggering a Bitcoin recovery or causing further losses. Martinez said that the 200EMA is a strong indicator of whether Bitcoin will rebound or continue to fall. price rebound. This would give Bitcoin a new bullish impulse and could potentially push its price over the $70,00 mark.
Analysts suggest that if 200EMA breaks, like it did in January, and as shown in the graph below, this may expose Bitcoin to more downward pressure, which could lead to even further losses.
![Bitcoin price](https://fxruhanahmed.com/2/wp-content/uploads/2024/04/Bitcoin-Price-Plummets-As-US-Government-Transfers-2B-In-Seized.jpeg)
Bitcoin (BTC), which is continuing to correct its price, currently trades at $65,390. BTC’s price has dropped by 5% in the last 24 hours. It has also experienced an 8% drop over the previous seven days.
Market participants closely watch to see if the key level of support can sustain any further drops in price or if there will be a possible bounce before this point. It is unclear what will happen in these scenarios.
Chart from TradingView.com, image from Shutterstock
Disclaimer article It is intended solely for educational use. NewsBTC does not give its opinion on the best way to invest, whether you should buy, hold or sell any investment. Investing is risky and comes with risks. It is recommended that you conduct your own research. own Do your research before you make any investments. This website is for informational purposes only. own risk.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: www.newsbtc.com