Bitcoin Traders Target $50,000 as Billion-BTC Selling Pressure Looms

Bitcoin (BTC) traders expect prices to fall as low as $50,000, a level not seen since mid-February, in the coming weeks as the largest cryptocurrency by market cap could face billions of dollars in trading pressure. sale.

BTC prices have fallen more than 10% over the past seven days, CoinGecko data shows, falling below a critical technical indicator on Thursday and erasing all gains since late February.

Trading firms like QCP Capital have attributed the bearish sentiment to wallet activity from a German government entity and the defunct cryptocurrency exchange Mt. Gox, and some market analysts say there is more pain ahead.

“Bitcoin selling pressure is unlikely to ease in the coming days,” Rachel Lin, founder of on-chain cryptocurrency exchange platform SynFutures, said in an interview. “The German government still has more than $2.3 billion in Bitcoin, Mt. Gox has more than $8 billion, and the US government has more than $12 billion.

“The market expects the majority of Mt. Gox users to dump their tokens, but we could see a rally if sales are lower than anticipated. On the other hand, if there are enough sales to push the price down, we could be close to the $50,000 level soon,” he said.

Alex Kuptsikevich, senior market analyst at FxPro, echoed the sentiment in an email to CoinDesk: “Bitcoin fell below the 200-day moving average and has so far been unable to recover above it, trying to stay within established patterns.

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