Bitcoin faces selling pressure amid current bearish sentiment.
The market reacts cautiously to Mt. Gox’s creditor repayment announcement.
Bitcoin bears once again made investors sit on their toes, but this time, they made them more anxious by dropping below $59K. In the past day, Bitcoin fell by 3%, hitting an eight-week low of $58,601.70 after reaching a 24-hour high of $62,900.
The bears have been making big noises since last week. It has dropped 7%, leading to the most bearish state, with BTC hitting a Fear Index 30. This drop is accompanied by selling pressure, with the daily RSI at 29.
Meanwhile, Mt. Gox announced it will start repaying creditors in BTC and BCH in early July 2024. It currently holds 141,686 BTC ($8.63B) across three wallets. The market reacted negatively to this news.
A Potential Bullish Rebound?
While hopes for a Bitcoin bull comeback are dwindling, some technical chart indicators tell a slightly different story.
Prominent analyst Ali noted that the Bitcoin MVRV Ratio has dipped below -8.40% on four occasions since February 2023. Each time, it triggered BTC price jumps of 63%, 100%, 92%, and 28%. Currently, with BTC priced under $60,000 and the MVRV Ratio at -8.96%, he marked this might be an ideal time to buy the dip– predicting a bullish future.
Moreover, the TD Sequential presents a buy signal on the Bitcoin daily chart, predicting a rebound of one to four daily candlesticks for BTC.
Also, another Crypto analyst Axel Adler highlighted the short-term holders’ (STH) spent output profit ratio (SOPR) metric. The 90-day moving average (90DMA) was just above 1 at press time. Compared to the 2016 cycle, Bitcoin could continue its correction until this metric falls below. Observing a trend reversal in favor of the bulls’ rally would become more likely.
So, for Bitcoin bulls, sustaining momentum is crucial. The next significant milestone lies at the $66,477 mark, with $68,468 also in sight if the upward trend continues. Conversely, if the bears worsen the scenario, the price may drop to $56,569.
