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Bitcoin has failed to continue its bullish momentum thus far on Tuesday and is witnessing a substantial pullback.
The Bitcoin price has hit a double top at $65,000 and has since dipped nearly 4% to exchange hands at as low as $62,600. BTC is currently trading at $63,500 at press time.
The correction comes after Mt. Gox moved nearly $6 billion of its Bitcoin holdings, likely in preparation for upcoming repayments.
24 hours of #Bitcoin price action getting wiped out.
Dammit, Mt. Gox! 
pic.twitter.com/CI2mSmUvmO
— Lark Davis (@TheCryptoLark) July 16, 2024
Double Top For Bitcoin, Is Another Crash Coming?
The Bitcoin price rallied following Donald Trump’s failed assassination attempt, in addition to the German government running out of its BTC holdings. The failed attempt has bolstered the odds of a Trump presidency, which is expected to be favourable towards the crypto industry.
Donald Trump also picked a pro-crypto running mate on Monday in J.D. Vance. However, the Mt. Gox news has erased much of Monday’s gains.
While the German government had $2 billion worth of Bitcoin, Mt. Gox’s BTC holdings are valued at nearly $9 billion. Consequently, the likelihood of a larger crypto crash cannot be ignored, depending upon the rate at which the defunct exchange moves its Bitcoin to exchange.
Today’s $6 billion move has certainly made investors jittery.
TODAY: $5.8B MT. GOX BTC ON THE MOVE.
Mt. Gox wallets moved a total of 91,755 BTC ($5.8B) this morning to new addresses. pic.twitter.com/BEAmk6E70b
— Arkham (@ArkhamIntel) July 16, 2024
Bitcoin’s technicals are also signalling the possibility of a pullback. For instance, the BTC price could look to fill the CME Gap that exists between $58,000 and $62,000. These gaps form when Bitcoin makes a massive move on weekends when the stock market – including the Chicago Mercantile Exchange – is closed.
The bulls would need to defend the $62,800 support level to prevent another bearish breakdown. A failure to do so would likely kickstart a downside move to $58,000 to close the CME gap.
In such a scenario, the bulls must defend BTC’s 200-day Exponential Moving Average, which has been a crucial support level from the very start of this bull cycle.
Can The Federal Reserve Come To Bitcoin’s Rescue?
Donald Trump’s improved odds of winning the White House in November following his assassination attempt are likely already priced in.
The cryptocurrency market would need another bullish narrative to counter the Mt. Gox FUD and the Federal Reserve may provide just that.
Fed chair Jerome Powell adopted a surprisingly dovish stance on Monday. He claimed that it would be too late to cut interest rates if the Fed waits for 2% inflation. Considering the mild PCE and CPI inflation prints, a rate cut may not be far away.
The next FOMC meeting is scheduled for July 31st. As per the CME FedWatch, the market is currently pricing in only an 8% probability of a rate cut this month and 87% in September.
However, if the central bank surprises the market with a rate cut in July, the Bitcoin price could easily hit a new all-time high in the coming weeks.
Investors Turn To Crypto Presales Amid Market Uncertainty
Investors remain confident that the bull market is not over, only delayed. Consequently, they have heavily invested in crypto presales, considering that they are not impacted by short-term price action.
For instance, a new BRC-20 token 99Bitcoins has raised nearly $2.5 million in its ICO.
BRC-20 tokens such as ORDI and Stacks have shown a strong correlation to Bitcoin and are being treated as beta plays on it. Now, 99BTC is quickly emerging as a major player in the sector.
99Bitcoins already has an established investor community, owing to its decade-long pedigree of being the go-to crypto education platform. In fact, it has nearly 3 million subscribers on its YouTube and website.
These community members are eligible for lucrative monetary perks, provided they buy and hold 99BTC. For instance, they can earn free crypto, receive alpha trading signals and access VIP trading groups. They can also register for the 99Bitcoins airdrop, in which 99 lucky winners will win over $1000 worth of BTC.
Consequently, experts are foreseeing significant demand for this new crypto coin, Some have even suggested the possibility of 10x returns.
Similarly, experts have identified Base Dawgz as another presale token with high upside potential.
Indeed, Base meme coins are expected to be in high demand in the upcoming bull run, especially after the success of Brett.
DAWGZ could be the next big meme coin on the chain, thanks to its high staking rewards, share-to-earn utility and multi-chain status.
Some popular traders also believe that Base Dawgz could potentially offer up to 100x returns.
*Cryptonomist did not write the article or test the platform.
