Bitcoin’s (BTC) price has recently seen a resurgence, reaching around $66,000, a level it hasn’t touched in over a month. As the leading cryptocurrency stabilizes near this price, market experts offer varied predictions on its future movements.
Low BTC Selling Pressure
This price level, first breached on July 20, marks a significant point of interest. Pseudonymous trader Emperor noted that Bitcoin has repeatedly tested this level as support, suggesting it might hover around this price till at least September.
He added that this consolidation phase provides a strategic window for investors looking to accumulate more Bitcoin to do so. Emperor advised traders to be prepared and buy should the price dip below $66,000, capitalizing on the stability before any significant price uptrend.
One key factor contributing to Bitcoin’s price stability is the current low selling pressure among its holders. According to CryptoQuant analyst Axel Adler, there has been a substantial decrease in the number of Bitcoin deposit addresses across all exchanges. This decrease suggests that fewer investors are moving their Bitcoin to exchanges to sell, indicating a stronger HODLing sentiment.
Mt. Gox Creditors’ Impact
A looming concern in the market has been the potential sell-off from Mt. Gox creditors. The now-defunct exchange owes over $9.4 billion in Bitcoin to about 127,000 creditors. There were fears that the distribution of these funds could flood the market, causing a significant price drop.
However, recent data suggests that these fears may be unfounded. CryptoQuant co-founder Ki Young Ju pointed out that, despite the beginning of distributions, there has been no significant increase in Bitcoin trading volumes or outflows from exchanges like Kraken.
This lack of sell pressure from Mt. Gox creditors is positive, as it alleviates concerns of a sudden market dip. Meanwhile, renowned crypto analyst Titan of Crypto has forecasted that Bitcoin’s price could soar to a new high of $88,500 by September based on his Ichimoku analysis.
This optimistic outlook relies on the continued influx of investments into Bitcoin ETFs, which have been a significant driver of the cryptocurrency’s recent price gains. Notably, Bitcoin ETFs accounted for 75% of new investments as of February 15, coinciding with the asset’s rise above $50,000.
Bitmap Among Exchanges Facilitating Mt. Gox BTC Repayments
Notably, Bitstamp is one of the five exchanges working with Mt. Gox to facilitate repayments for the Rehabilitation Plan – the plan to return funds to the creditors who lost their assets when Mt. Gox collapsed. Despite the massive amounts of Bitcoin transferred so far, the repayment process is not yet complete.
According to CryptoQuant data, over 66% of the Bitcoin owed to creditors has been distributed so far. The transfers on July 24 followed a similar pattern to those performed a day earlier. On July 23, Mt. Gox sent out over 47,500 BTC.
After completing the transactions for July 24, Mt. Gox transferred a total of 42,583 BTC within four hours. This left the Arkham-tracked Mt. Gox wallet with 161 BTC, worth approximately $10 million. The rapid depletion of Mt. Gox’s Bitcoin reserves suggests that the repayment process may soon conclude.