Bitcoin’s price has declined over 6.85% to $57,000 zone due to market concerns.
Mt. Gox transactions and a $300M U.S. BTC transfer heighten market sell-off fears.
Bitcoin’s price fell nearly 6.85% to $57,733 on Thursday, driven by renewed concerns over potential token distributions from the defunct Mt. Gox exchange and increased capital outflows from major exchanges. This decline came despite positive signals from U.S. inflation and interest rate data, highlighting a growing risk-off sentiment in the market.
Recent developments have heightened fears of additional selling pressure on Bitcoin. Mt. Gox, which began returning Bitcoin stolen during a 2014 hack to its clients earlier this year, recently conducted test transactions involving a substantial amount of Bitcoin. This has led to speculation about further distributions, causing unease among traders.
Additionally, the U.S. government has transferred 10,000 BTC, valued at approximately $593 million, from a government wallet to a Coinbase Prime account. This transfer, which follows a previous $2 billion Bitcoin movement to an unknown wallet, has fueled concerns about an imminent sale that could further impact BTC’s price.
In the midst of these developments, USDT outflows are also being monitored for signs of additional price weakness.
Bitcoin Signals Bearish Trend
According to the BTC daily price chart, the RSI currently at 39. Bitcoin is nearing the oversold zone, which typically signals that the asset might be undervalued. This could indicate the potential for a price rebound if buying interest picks up.
Bitcoin (BTC) Price Chart (Source: TradingView )
Further, the 21-day Simple Moving Average (SMA) is positioned above the current BTC price on the 1-hour BTC/USD chart. That indicates a bearish signal.
If Bitcoin fails to maintain its position above $57,000, it could see a decline to $55,000, with a potential bottom support around $54,250. Conversely, if Bitcoin rebounds, it could rise towards $58,500, with further gains possible up to $60,000. Breaking above this level might set the stage for a push towards $63,200 and even $65,000. With further optimism potentially driving the price to $70,000.
