Bitcoin Struggles as Bhutan Sells BTC Holdings – Could $96K Be at Risk?

The cryptocurrency market is closely monitoring the Royal Government of Bhutan's recent decision to sell a substantial portion of its Bitcoin reserves.

With BTC trading near $97,500, this strategic move has sparked analysis and debate among traders regarding its potential impact on market trends and sentiment.

Bhutan Offloads $40 Million in Bitcoin

Over the past two months, the Royal Government of Bhutan has sold 1,696 BTC, valued at approximately $139 million, at an average price of $81,999 per coin.

The latest transaction, reported by Arkham Intelligence, involved 406 BTC worth $40 million transferred to QCP Capital. This marks Bhutan's strategic move to capitalize on Bitcoin’s recent price rally.

BREAKING : Royal Government of #Bhutan has just transferred 406 BTC ($40M).

They still hold 12,202 BTC worth $1.2B. pic.twitter.com/5gP4PNOLGa

— Whale Alerts (@WhaleAlerts_08) December 9, 2024

Despite these sales, Bhutan remains a major BTC holder, with a treasury balance of 11,791 BTC valued at $1.16 billion. Known for leveraging hydroelectric energy for mining, Bhutan has built a significant portion of its Bitcoin reserves through sustainable operations.

This continued holding positions Bhutan as the fourth-largest government holder of Bitcoin globally.

Why Bhutan's Moves Matter

1. Market Impact: Bhutan's periodic sales highlight a calculated effort to capitalize on Bitcoin's price peaks while maintaining its long-term holdings.
2. Mining Strategy: Bhutan's hydro-powered mining operations showcase a model of sustainable BTC accumulation, differentiating it from speculative buyers.
3. Investor Sentiment: While some fear these sales could pressure BTC prices, analysts remain bullish on Bitcoin's trajectory, particularly for 2025.

Bitcoin Holds $97,500: Bulls Eye $98,000 While $96,000 Supports the Base

Bitcoin is trading at $97,487, marginally recovering from a 1.32% decline over 24 hours. On the 4-hour chart, BTC stays above its ascending trendline, with $96,000 serving as a pivotal support level. The Relative Strength Index (RSI) stands at 46.92, reflecting neutral momentum with a slight bearish tilt.

Key Levels to Watch:

• Immediate Resistance: $98,003, with further targets at $100,418 and $103,617.
• Support Zones: $96,000, followed by $95,490 and $92,194.
• EMA Indicators: The 50-day Exponential Moving Average at $98,310 currently limits upward movement.

If BTC breaks above $98,003, it could reignite bullish sentiment, targeting $100,418. However, a sustained drop below $96,000 may push prices toward $92,194, intensifying bearish momentum.

Conclusion

As Bitcoin stabilizes near $97,500, its trajectory hinges on key levels, including the $96,000 support and $98,003 resistance. Bhutan’s strategic Bitcoin sales underscore the complex dynamics influencing BTC prices.

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