The recent news of repayments in Bitcoin and Bitcoin Cash is expected to add more downward pressure on these assets, according to metrics and futures data. Bitcoin faced selling pressure, dropping from $71.9k to $61.4k recently due to news from the now-defunct Mt. Gox exchange. The exchange suffered a massive hack in 2014, resulting in the loss of 740,000 BTC. Repayments for the stolen assets were announced to begin in July 2024, which could contribute to further selling pressure on Bitcoin and Bitcoin Cash.
An AMBCrypto report in late May revealed that Mt. Gox moved 140,000 BTC, valued at $9.4 billion back then, which did not immediately impact prices. However, Bitcoin formed a local top just below $72k a week later. The movement of a significant amount of BTC from Mt. Gox could result in increased selling pressure, affecting Bitcoin’s price further. The correction in the market might be nearing its end, indicated by metrics such as short-term holders’ spent output profit ratio (SOPR) and daily RSI.
Crypto analyst Axel Adler highlighted the SOPR metric and observed that a trend reversal could occur in favor of the bulls once it falls below 1. Similarly, analyst Ali Martinez noted that the daily RSI in the oversold region could lead to a recovery in Bitcoin prices. Despite these positive signs, a violent move southward below $60k might precede consolidation or recovery in the coming weeks. BTC futures market data also showed bearish sentiment, with spot CVD and Open Interest declining and long liquidations increasing.
The long/short accounts ratio indicated that smaller retail traders were betting on a Bitcoin bounce, while larger accounts remained short. It is highly likely that Bitcoin bulls will continue to face pressure from sellers in the next 2-4 weeks, with a potential sudden drop in prices. Traders are advised to monitor their portfolios closely and use resources such as the Bitcoin Profit Calculator to stay informed about market trends. Overall, the market is currently volatile, and caution is advised when trading in Bitcoin and Bitcoin Cash.
