Bitcoin’s price has dropped nearly 6.85%, landing around the $57,000 mark due to growing market concerns. Transactions related to Mt. Gox and a significant $300 million BTC transfer by the U.S. government have intensified fears of a market sell-off.
On Thursday, Bitcoin’s price fell to $57,733, spurred by concerns over possible token distributions from the defunct Mt. Gox exchange and substantial capital outflows from major exchanges. This decline occurred despite positive U.S. inflation and interest rate data, reflecting a rising risk-off sentiment among investors.
Recent developments have exacerbated fears of increased selling pressure on Bitcoin. Mt. Gox, which began returning Bitcoin stolen during a 2014 hack to its clients earlier this year, recently conducted test transactions involving a significant amount of Bitcoin. This has led to speculation about further distributions, causing unease among traders.
Additionally, the U.S. government transferred 10,000 BTC, worth approximately $593 million, from a government wallet to a Coinbase Prime account. This move, following a previous $2 billion Bitcoin transfer to an unknown wallet, has fueled concerns about an imminent sale that could further impact BTC’s price.
In light of these developments, USDT outflows are being closely monitored for additional signs of price weakness.
Bitcoin Signals Bearish Trend
According to the BTC daily price chart, the Relative Strength Index (RSI) is currently at 39, nearing the oversold zone. This typically indicates that the asset might be undervalued, suggesting the potential for a price rebound if buying interest increases.
Bitcoin (BTC) Price Chart (Source: TradingView)
Additionally, the 21-day Simple Moving Average (SMA) is currently above the BTC price on the 1-hour BTC/USD chart, indicating a bearish signal.
If Bitcoin fails to maintain its position above $57,000, it could decline to $55,000, with potential bottom support around $54,250. Conversely, if Bitcoin rebounds, it could rise towards $58,500, with further gains possible up to $60,000. Breaking above this level might pave the way for a push towards $63,200 and potentially $65,000, with further optimism potentially driving the price to $70,000.
