Bitcoin is losing more than 7% today and capitulation of investors in the largest cryptocurrency, pressured so-called 'altcoins' market, leading to double-digit declines of such cryptocurrencies like Cardano, Chainlink, Avalanche and even Dogecoin. Also, Ethereum is losing almost 9% today. Investors may be also fearful that US ETFs will start to sell Bitcoins with higher pace amid Bitcoin market capitulation and rising fears amid Mt.Gox impact on Bitcoin price. The exchange has almost 141k Bitcoins worth $8.5 bln (versus $14.6 bln in total net inflows to US Bitcoin ETFs since 11 January) which will be sold in a days or weeks from now as authorities informed that will start the process in July.
- The Bitcoin's drop below 54k level liquidated long BTC positions worth almost $222 million, with $665 million liquidated on the whole crypto market according to CoinGlass data during last 24 hours
- The reason for that is not only weak Bitcoin performance and nor net inflows and overall weak activity in US ETFs, but rising fears amid Mt.Gox reserves sell-off (repaying creditors, influenced by hackers in 2014)
- Yesterday, Mt.Gox transferred more than 47,2k Bitcoins (1/3 of all BTC reserves) to Bitbank exchange which is supporting repaying process. The Mt.Gox has total BTC
- It was the first such transfer since May; exchange informed almost 10 days ago that will start repaying creditors since July. Also, address related with Germany's government is pressuring market sentiments, with 42,2k Bitcoin which can yet to be sold, after authorities decided to sell 7,5k BTC until now, since 19 June.
- Famous and controversial Tron blockchain founder, Justin Sun informed that he want to start negotiate with Germany authorities, willing to buy Germany's Bitcoins worth almost $2.2 billion to minimize impact of selling those on the market
Bitcoin (D1 interval)
Bitcoin dropped well below key support zone, near SMA200 potentially reversing the trend, for longer. However, if bulls will come back above $58k, defending 38.2 Fibonacci retracement level, Bitcoin can still recover faster. In the scenario of further declines, we can see a major resistance zone at $51k level with significant 38.2 Fibo retracement level of the upward wave since the fall of 2022. Testing those level may lead to another almost 7% price drop from current levels. A drop below $50k, may be driven by potentially rising ETFs outflows and this scenario would be possibly the worst for Bitcoin, with potential to test levels not seen since January 2024.
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Source: xStation5
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