Approximately a decade has passed since the famed downfall of Mt Gox, the largest bitcoin exchange in history, leading to creditor updates on their outstanding claims. Potential payouts may commence as soon as May. Amidst this development, bitcoin continues its upward trend in value.
Further potential heavy selling in the pipeline?
The price of Bitcoin ($BTC) is approaching a significant obstacle in its upward climb. After Bitcoin’s recent recovery from the extensive selling triggered by the Grayscale Spot Bitcoin ETF (GBTC), another major wave of selling lies ahead.
Mt Gox creditors have been notified about possible adjustments to their pending payments. Reports indicate that some of these payments might be distributed as soon as next month.
A $9 billion worth of Bitcoin becoming available for sale in a short time frame could significantly pressure the price. However, not all of this Bitcoin may be released immediately, and some might still be held by investors during a bull market.
The Grayscale ETF has sold approximately half of its $9 billion Bitcoin holdings since inception, equating to around $20 billion in Bitcoin being released into the market over the past 6 months. This could potentially pressure Bitcoin prices down, but the impact would depend on how much more Bitcoin is put up for sale.
$BTC looking to break next resistance
Currently, Bitcoin ($BTC) is bouncing back from its recent dip to $59,600. Over the past five days, a notable upward trend has emerged, with the resistance at $66,500 being tested since Monday. Considering the short-term chart appears to be shaping up as an ascending triangle pattern, it seems plausible that Bitcoin’s price will continue climbing and ultimately surpass the resistance level.
Bull flag break could spark next parabolic phase for $BTC
On a larger scale, Bitcoin’s daily chart appears promising. It continues to stay within an expansive bull flag pattern, providing solid underlying support. With potential for further growth, it seems poised to reach the flag’s peak over the coming days. However, if the price manages to surpass $67,000, it will encounter new resistance at $69,000 and beyond.
If a breakout from the bull flag occurs and is followed by a new record-high price for Bitcoin, the strong momentum during this final stage of its parabolic bull market could absorb any Bitcoins sold from Mt Gox and use them as fuel for more purchases.
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2024-04-24 16:03