[Bitcoin Price: What to do when Mt. Gox BTC payments threaten to drop to $46,000]
Crypto markets have been depressed for much of the past two weeks. Bitcoin prices fell to nearly $60,000 from a peak of $70,000 following the release of May CPI data, showing easing U.S. inflation.
Investors are counting their losses as a new report suggests that collapsed Mt. Gox will begin distributing Bitcoin and Bitcoin Cash (BCH) to creditors, potentially exacerbating the downward trend.
Mt. Gox was once a market-dominating Bitcoin exchange that rose to prominence in 2010 but closed after hundreds of thousands of Bitcoins were lost due to a 2014 hack and mismanagement. After a decade-long bankruptcy process, Mt. Gox will begin making restitution payments in BTC and BCH. The trustee has completed the exchange and confirmation of the information required for the payments, which will begin on July 2, unnerving the crypto market.
Bitcoin price trades at $61,038, down 5% in 24 hours, 7% in seven days and 12% in a month, according to CoinGecko. Ethereum price also encountered strong resistance, with value falling 5% to $3,315 on Monday. Total market capitalization revised to $2.359 trillion from $2.785 trillion on June 5.
Support at $60,000 is critical for a trend reversal. However, the double top pattern heightens the risk of Bitcoin falling to $46,000. A death cross pattern on the daily chart also points to more pain if support at $60,000 is breached. The oversold relative strength index (RSI) is below 30, suggesting that bulls have limited opportunities to stem the price decline and that Bitcoin may enter a longer-term downward spiral with a target of $46,000.
Several factors could aid Bitcoin's recovery, including an Ethereum ETF that is set to begin trading. If market sentiment improves and investors feel confident about buying the dip, BTC will see a stronger trend reversal, surpassing $70,000 and setting new highs.
