The crypto market is on edge, with Bitcoin hovering around $57,000 and showing many bearish signals that raise questions about whether it can withstand the coming storm. Expected to begin in July, Mt. Gox payments add fuel to the fire by adding $8.5 billion worth of Bitcoin to an already volatile market. Will Bitcoin find its feet or will it suffer new declines? 📉

Bitcoin is currently showing bearish signals as it has fallen below its 200-day moving average (MA) daily. The daily Relative Strength Index (RSI) has fallen below its moving average at 29.79. This presents an attractive time to invest, especially given Bitcoin's history of recovery from such lows. However, current market conditions indicate the possibility of further declines.

In July, Mt. Gox will begin distributing approximately $8.5 billion worth of Bitcoin to creditors. Although CoinShares suggests that this will not have a significant impact on Bitcoin's price, the market may already be feeling some effects. In an aggressive scenario, a potential decline of 19.2% seems likely. This is consistent with our own internal analysis, which shows that Bitcoin's price could fall into a support range between $50,856 and $51,985.

Considering all these factors, it is possible that Bitcoin could remain lower for a while, perhaps until September or October. Given this outlook, the strategy involves two scenarios. If you find these prices attractive, the first approach is to invest in Bitcoin now at dollar cost averaging and move on if it drops further. Alternatively, you can wait in the $50,000 to $52,000 range for a potential decline and take a long position. Historically, investing when Bitcoin is below the 200-day MA has proven to be a strong long-term decision.