CoinDesk Report:
On July 5th, the price of Bitcoin fell below the $55,000 mark, reacting negatively to the latest developments surrounding the $9 billion payout to Mt. Gox creditors.
Mt. Gox Moves $2.7 Billion, Bitcoin Prices Fluctuate
Bitcoin has dropped to its lowest point since late February, breaching key support levels. Earlier on Friday, the defunct Mt. Gox exchange moved 47,228 BTC from cold storage to a new address, potentially in preparation for creditor repayments, intensifying sell-offs.
On Friday, July 5th, the leading cryptocurrency dipped below $53,600, marking a decline of over 4%. Accordingly, according to TradingView charts above, BTC has now reached its highest level since February 26th. At UTC 00:27, Mt. Gox transferred a significant amount of BTC worth $2.6 billion, signaling the beginning of asset distribution to creditors affected by the 2014 hacking attack.
The announced Mt. Gox payments, including 140,000 BTC, 143,000 BCH, and yen, have sparked negative sentiment among traders, who fear market supply shocks if the majority of creditors choose to sell their coins immediately.
More significantly, when these funds were seized in 2014, BTC was priced around $600, compared to today’s over $55,000. This has raised concerns that most creditors may opt to sell large amounts of assets to lock in profits in the coming days.
Mt. Gox’s expenditure of FUD (fear, uncertainty, and doubt) has triggered significant sell-offs in the spot market and rapid liquidation in the BTC derivatives market.
Despite attempts by some analysts to mitigate investor concerns by suggesting limited impact from sell-offs, Bitcoin has dropped 10% over the past week and 22% over the past month, reflecting pessimistic market outlooks.
Bitcoin Price Forecast: Bull Market Could Rebound to $60,000
Recently, Bitcoin prices dropped to $55,000, attracting new entrants hoping to capitalize on this pullback. As of July 5th, BTC hovered around $55,462.78, showing signs of consolidation.
The 200-day SMA stands at $58,540.84, a crucial level Bitcoin needs to reclaim to signal a reversal in the bull market. Bollinger Bands indicate intensified volatility, suggesting significant changes are imminent.
Bitcoin Price Forecast BTCUSD | TradingView
Key support lies near the $55,000 mark, aligning with the lower Bollinger Band and providing a strong foundation. If this level holds, we may see a mid-term rebound towards $60,000, with initial resistance at $58,540.84 (200-day SMA) and stronger resistance near $62,270.11 (upper Bollinger Band). Price action within this range will be crucial in determining the next trend direction.
Despite recent economic downturns, overall market sentiment remains cautiously optimistic. RSI approaching oversold territory indicates a potential bull market reversal. Increased buying pressure could quickly push Bitcoin back to $58,540.84 and target the psychological level of $60,000. Breaking through this point could open doors to higher targets, possibly reaching $62,000 and beyond.
In conclusion, while Bitcoin’s recent decline presents challenges, it also offers opportunities for new investors. Maintaining above $55,000 is crucial, and successfully surpassing $58,540.84 could lay the foundation for a bull market rebound towards $60,000 and beyond.