Has DOJ’s bitcoin [BTC] Movement triggered panic among the owners?

• The DOJ’s transfer of some BTC seemed to drop the price of BTC.
• Despite the DOJ’s mass movement, the netflow has not reflected any irregular activity.

Bitcoin [BTC] has struggled to overcome the barrier it has been hitting lately. Recent actions by a US government agency have only served to amplify this FUD in a most unexpected way. But the question is: how much of an impact has that had?

Read Bitcoin [BTC] Price prediction 2023-24

DOJ’s BTC move moves the crypto space

There was a report that the US Department of Justice (DOJ) moved over $1 billion worth of bitcoin on Wednesday [BTC] to various wallet addresses, including one from Coinbase.

Authorities reportedly conducted three separate bitcoin transactions. About $10,000 was transferred to Coinbase-managed wallets, while about $41,000 was transferred to government-managed accounts. The DOJ’s actions exacerbated investor fears that strong selling pressure could crash the token’s price.

Santiment reported that the Justice Department closed a series of deals totaling $666 million in 2023, essentially double the previous record.

Bitcoin continues its downtrend

By the close of trading on March 8, the BTC price had fallen a total of 2.21% on a daily basis. At the time of this writing, it was selling at around $21,600, down around 0.40% over the same period.

With the recent decline, it has been trending down for four straight days.

Source: TradingView

The Relative Strength Index was the indicator that best captured current BTC emotion.

A downtrend would be indicated by the RSI falling below the neutral line and even below 36. However, it is still being determined whether it will break the $20,000 support level and drop below it. The coin’s resistance was the long moving average moving above it.

Bitcoin volume surge recorded

A look at Santiment’s volume indicator showed that BTC’s transaction volume had been increasing recently. At the time of this writing, Bitcoin had surpassed a total transaction volume of over 40,000. This was one of the busiest days for Bitcoin in recent months.

Source: Santiment

How much is 1.10.100 BTC worth today?

Panic?

However, the netflow metric represented typical activity, regardless of the sentiment that other metrics might show.

As of this writing, according to the Netflow indicator on CryptoQuant, there have been more inflows than outflows. What was remarkable, however, was that there were no visible fluctuations in the inflow volume.

The indicator’s current position suggests that BTC holders were not panicking, suggesting that another price drop is not to be expected.

Source: CryptoQuant

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