Bitcoin May Head For Month-Long Correction, As Further Selling Pressure Threatens

Bitcoin could be heading for a month-long correction, as new selling pressure from Mt.Gox and the German government threatens to push Bitcoin price below the psychological $60,000 level.

Bitcoin could see correction for up to 4 weeks: analyst

Before the price rally resumes, Bitcoin (BTC) could see a correction for up to four weeks, according to renowned Bitcoin analyst Willy Wu.

The analyst wrote in a June 22 X article addressed to his more than 1.1 million followers:

“Looking at this trend… it will probably take another 1-4 weeks of cooling before #Bitcoin price action becomes quite boring. Chart: Density of speculators playing casino games.

Intensity of Bitcoin speculation. Source: Willie Wu

“In other words, BTC price action will become like boring AF, the trading casino will disappear, and then the price will increase,” the analyst added.

The potential one-month correction is in line with the predictions of renowned cryptocurrency analyst Rekt Capital, who expects further downward pressure on the Bitcoin price, based on last week’s closing price.

The analyst wrote in a June 17 report:

“The weekly close below the blue level preceded releases from here, as the blue level will move to a new release point. Bitcoin will likely face the same fate.

BTC/USD, key weekly levels. Source: Reckitt Capital

about: Why have Fetch and SingularityNET AI tokens only increased by 30%?

BTC Price to Test $60,000 Amid Mt.Gox Refund

On June 24, collapsed cryptocurrency exchange Mt.Gox announced that it would start paying its downed users in July.

More than $9.4 billion worth of Bitcoin is owed to approximately 127,000 Mt.Gox creditors, who have been waiting for more than 10 years to get their money back, which could lead to significant selling pressure on Bitcoin.

This could lead to significant selling pressure according to Eric Balchunas, senior ETF analyst at Bloomberg. He wrote in an article dated June 24

“This amounts to eliminating more than half of the inflows into ETFs at once. the curse.”

Adding to the looming selling pressure, a German government-branded wallet transferred nearly 6,500 bitcoins on June 19, according to Arkham Intelligence.

The wallet has held approximately 50,000 Bitcoins since February 2024, representing over $3 billion at current prices.

However, others, like the cryptocurrency trader nicknamed “Jelly,” expect this to be only a temporary price change, rather than a deeper correction. The analyst wrote in an article dated June 24:

“Bitcoin’s daily RSI hasn’t been this low in almost a year. In fact, the last time we saw oversold conditions was when Bitcoin was trading at $26,000. A summer shake?

BTC/USD, RSI, 1-day chart. Source: Geely

The Relative Strength Index (RSI) is a popular momentum indicator used to measure whether an asset is oversold or overbought based on the magnitude of recent price changes.

about: Over $122 Million in Long Bitcoin Trades Liquidated as Bitcoin Price Falls Below $61,000

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.

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