Bitcoin Undergoes 4-Week Correction: Mt. Gox and German Government Sales Add Pressure, Reports TradingView News

The potential for a multi-week downturn in Bitcoin looms as increased sell-off activities from the Mt. Gox liquidation and cautionary moves by the German government could cause Bitcoin’s value to plummet beneath the crucial $60,000 threshold.

Analyst Predicts a Possibility of a 4-week Downtrend for Bitcoin

Bitcoin may enter a corrective phase that might last up to four weeks before any bullish trend resume, according to esteemed cryptocurrency analyst Willy Woo.

In a social media update dated June 22, shared with his following of over 1.1 million, the analyst commented:

“Observing this model… likely between 1-4 weeks of consolidation is needed before the #Bitcoin market cools off to the point of tedium. Chart indicates current speculator action is akin to gambling.”

“Put simply, BTC’s price movement will become yawn-worthy, as speculative traders exit, before we likely see another surge,” he elaborated.

This expected period of lateral movement aligns with the forecasts of renowned crypto analyst Rekt Capital, who also anticipates additional bearish momentum for Bitcoin’s price, building upon the previous week’s closure data.

The analyst discussed these insights in a June 17 report:

“Historically, a Weekly Close under the blue benchmark often leads to a pushback from this level, transitioning into a resistance point. Bitcoin might be preparing to replicate similar patterns.”

Bitcoin Price Under Scrutiny as Mt. Gox Prepares for Repayments

As of June 24, the defunct cryptocurrency exchange Mt. Gox made an announcement regarding the commencement of its creditor reimbursements set to begin in July.

Mounting over $9.4 billion in Bitcoin is waiting to be returned to nearly 127,000 creditors of Mt. Gox—an event that has been awaited for a decade and could exert considerable selling pressure on Bitcoin.

Senior ETF analyst at Bloomberg, Eric Balchunas, expressed concern over the potential market impact in a June 24 publication:

“This might wipe out more than half of all the ETF inflows in one fell swoop. Ouch.”

Further sell pressure might come from a wallet, identified by the German government, transferring nearly 6,500 BTC on June 19, as per Arkham Intelligence.

The wallet has been in control of nearly 50,000 BTC since February 2024, the current value of which exceeds $3 billion.

Conversely, some like the pseudonymous cryptocurrency trader Jelle, view the impending events as merely a temporary jolt rather than a lasting downward trend. The thoughts of the analyst were shared in a June 24 social media post:

“With Bitcoin’s daily RSI at its lowest in almost a year, similar to when BTC was priced at $26,000, could this be just a seasonal shakeout?”

The relative strength index (RSI) is typically utilized by traders to gauge the momentum of an asset and determine if it is currently overbought or oversold, based on recent price fluctuations.

Please note that this article does not constitute investment advice or recommendations. Every investment and trade involves its own set of risks, and individuals should do their due diligence before making any financial decisions.