Analysis Reveals Bitcoin Was Unaffected by U.S. Government Selling, Yet BTC Price Continues to Face Pressure
Bitcoin Struggles to Recover on May 11 as False Alarm on US Government Sales Spooks Markets
Analysts Refute Claims of U.S. Government Bitcoin Sales
Data from TradingView showed BTC/USD circling $27,400 at the time of writing.
The pair had seen a flash sell-off the day prior, briefly taking it to $26,850 after claims that confiscated BTC held by the U.S. government was being sold off.
This was subsequently disproved, but for already sensitive crypto markets, the damage was done.
Traders Label Local Lows as “Scam” Move, Predicting Further Downward Movement
“When the move feels like a scam and trades likes a scam then treat it like it,” he tweeted.
“I do expect a breakdown lower sooner or later. I’m not yet sure how deep but prepared to act quickly if neccessary.”
Experienced trader Anbessa has expressed agreement with the sentiment shared by various other traders, indicating a bearish outlook and forecasting a potential decline towards the $25,000 mark. With a focus on technical analysis and market trends, Anbessa joins the ranks of those anticipating further downside movement in the price of the asset.
Bitcoin Fees Drop Below $2 in the Latest Block
Bitcoin Transaction Fees Experience Significant Decrease in the Past 24 Hours, Easing Concerns Among Bitcoiners
Live numbers from Mempool.space had next-block fee rates at 47 satoshi per byte at the time of writing, or just $1.80.
According to data from monitoring resource BitInfoCharts, even on May 10th, the average fee had fallen below $15 — a drop of over 50% versus the day prior.
Reacting, Checkmate, lead on-chain analyst at Glassnode, took to task those who had called for code-changing measures to prevent fees from rising so heavily in future.
Cointelegraph previously highlighted that the surge in transaction fees was a direct result of increased on-chain activity and a higher demand for block space due to a significant influx of transactions.
“24hrs later, the average fees paid per block has returned to ~1.0 $BTC per block. Imagine arguing to change Bitcoin rules for a short-term fee spike due to people using the chain in ways you don’t agree with,” he tweeted alongside a chart.
“Trying to change the rules is the attack, not the inscriptions.”