Analyst Claims HODL Still Prevails as MtGox Acquires Bitcoin and BCH Nears 2024 Low

CoinJie.com reports:
Bitcoin fell by 3.89% due to Mt.Gox repayments and the German government selling off. 75.48% of Bitcoin holders are “in the money,” indicating potential bullish sentiment.
The cryptocurrency market has faced another challenging day, with the global market cap dropping to $2.04 trillion, a decrease of 3.33% in the past 24 hours.
Bitcoin takes a hit!
Particularly, Bitcoin (BTC) has garnered significant attention due to the sharp decline over the past week and rumors surrounding the Mt.Gox repayment process.
In fact, on July 5th, BTC dropped to its lowest level since February as Mt.Gox began its repayments.
Complicating matters further, the German government chose this moment to sell off their holdings of Bitcoin, adding to the fear, uncertainty, and doubt within the community.
Devchart, co-founder of ChartAlerts, pointed out,
“This is an awkward moment where you want to refill in this trash heap but you also realize that Mt.Gox and the German government have $10 billion worth of #BTC coming to market in the near future.”
As of the latest update, the trading price of BTC is $55,459.62, reflecting a decrease of 3.89% in the past 24 hours.
The relative strength index further confirms this downward trend, with the index well below the neutral level and approaching the oversold zone at the time of writing.
Historically, oversold and overbought conditions often indicate potential rebounds. Therefore, there is still hope for BTC to recover once the Mt.Gox repayment process concludes.
The impact of Bitcoin Cash should not be overlooked
Bitcoin Cash (BCH) also fell by 6.79%, exchanging hands at $311.35 at the time of writing.
The differential in the decrease indicates that BCH has suffered significantly greater losses compared to BTC. Alex Thorn, Director of Firmwide Research at Galaxy Digital, highlighted this earlier, stating,
However, analysis of IntoTheBlock data by AMBCrypto reveals that the majority (75.48%) of BTC holders hold tokens worth more than their purchase price at the time of writing, indicating that they are “in the money.”
In contrast, a small percentage (18.39%) of holders have Bitcoin tokens worth less than their purchase price, leaving them “penniless.” This suggests bullish sentiment or potential price surges for Bitcoin.
CEX-HTX summarized this well when they noted,