Bitcoin Traders Aim for $50K Amid Impending Selling Pressure Worth Billions in BTC
Bitcoin traders are bracing for a potential drop in the largest cryptocurrency to as low as $50,000 in the near future, with the market facing the looming threat of billions of dollars’ worth of supply flooding in.
The recent plummet in BTC prices by over 10% within the last week, as per data from CoinGecko, has rattled the crypto community. This decline has seen Bitcoin dip below a crucial technical threshold, wiping out all gains made since the end of February.
Market observers, such as trading firms like QCP Capital, attribute this bearish trend to significant wallet movements involving a German government entity and the defunct crypto exchange Mt. Gox. Analysts predict further turbulence ahead, with selling pressure showing no signs of abating.
Rachel Lin, the founder of on-chain crypto exchange SynFutures, highlighted the substantial Bitcoin holdings still in possession of various entities. The German government, Mt. Gox, and the US government collectively hold billions in Bitcoin, suggesting sustained selling pressure in the market.
Echoing these sentiments, Alex Kuptsikevich, a senior market analyst at FxPro, emphasized Bitcoin’s struggle to regain momentum, particularly as it slipped below the 200-day moving average. Kuptsikevich suggested a probable downward trajectory towards the $51,000 level, citing established trading patterns and moving averages as key indicators.
Mt. Gox’s recent distribution of Bitcoin and Bitcoin Cash, stolen during a 2014 hack, further exacerbated the downward pressure on BTC prices, leading to an 8% drop as traders reacted to the news. Additionally, movements of significant sums of Bitcoin by the German Federal Criminal Police Office (BKA) to crypto exchanges have raised concerns about potential sell-offs of assets seized in 2013.
Despite these challenges, Bitcoin prices showed a brief recovery during the European morning, bouncing back from a low of $53,600 to nearly $55,000. However, this fluctuation triggered liquidations of over $550 million in crypto longs within a 24-hour period, underscoring the market’s volatility and susceptibility to sudden shifts.
In conclusion, the cryptocurrency landscape remains turbulent as Bitcoin faces mounting selling pressure from various sources, potentially driving prices down to critical support levels in the near future. Traders and analysts are closely monitoring these developments, anticipating further market fluctuations in the coming weeks.
