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BITCOIN FACES POTENTIAL DROP TO $50,000 AMID SELLING PRESSURE
#Bitcoin #BitcoinPriceAnalysis #bitcoindown $BTC

Bitcoin traders predict a price drop to as low as $50,000 in the coming weeks. The cryptocurrency, which hasn't seen these levels since mid-February, is under significant selling pressure. A trader highlighted, "The German government still holds over $2.3 billion worth of Bitcoin, Mt. Gox has more than $8 billion, and the US government has over $12 billion."

Recent Price Decline

According to CoinGecko data, Bitcoin (BTC) prices have plummeted more than 10% in the past week. This fall brought BTC below a critical technical indicator on Thursday, wiping out all gains made since the end of February.

Technical Analysis and Market Sentiment

Alex Kuptsikevich, a senior market analyst at FxPro, echoed this sentiment. In an email to CoinDesk, he noted, "Bitcoin dropped below the 200-day moving average and hasn't bounced back, staying within established patterns. From this position, a further drop to $51,000 is more likely than a rise to $65,000."

Impact of Mt. Gox and German Government Actions

On Friday, Mt. Gox began distributing bitcoin and bitcoin cash stolen in a 2014 hack, causing an 8% drop in BTC as traders reacted. Additionally, a wallet connected to the German Federal Criminal Police Office (BKA) has transferred millions of dollars worth of bitcoin to crypto exchanges since mid-June. These movements suggest an intention to sell assets seized from a 2013 piracy marketplace.

Brief Recovery and Market Volatility

Despite these factors, BTC prices briefly recovered mid-morning in Europe, rising to nearly $55,000 from a low of $53,600 in early Asian hours. However, the sudden drop led to over $550 million in crypto longs, or bets on higher prices, being liquidated in the past 24 hours.

Conclusion

The Bitcoin market is experiencing significant volatility due to large-scale selling pressures from government entities and Mt. Gox. Traders and analysts are closely watching these developments, anticipating potential price drops to $50k.