Bitcoin has fallen to $61,175 amidst a market decline and news about Mt. Gox, reaching oversold levels last seen in 2023. Analyst Van de Poppe has predicted a potential rebound or further drop.
The cryptocurrency market has experienced a significant downturn, with Bitcoin (BTC) leading the way in a sharp decline. In just one day, the total market value of all cryptocurrencies dropped by 1.40%, reaching a current level of $2.24 trillion.
During this decline, the value of BTC has plummeted significantly, hitting a new low of $61,175 as of the time of writing. This steep drop represents a 17.82% decrease from its monthly peak of $71,656, which was recorded just two weeks ago.
It’s worth noting that this decline started early in the day, with Bitcoin initially priced at $62,590, only to drop to an intraday low of $58,590. Despite a slight recovery, BTC is now hovering around the $60,000 mark, indicating a potential stabilization after a day of heavy losses.
Insights from Analysts
Market analyst Michaël van de Poppe has emphasized the severity of the situation, pointing out that Bitcoin is currently one of the most oversold assets, a condition last observed during major market upheavals such as the FTX crash and the correction in August 2023.
Essentially, Bitcoin’s daily RSI, which stands at 30.93, supports Van de Poppe’s assessment, clearly indicating that BTC is deeply entrenched in “oversold” territory.
Despite the bearish trends, Van de Poppe suggests that a recovery may be in the cards. According to his analysis, Bitcoin is at a critical support zone, and if it holds, a rebound to as high as $70.3K could be possible. However, failure to maintain this level could cause the price to decline towards the $52.8K region.
Impact of Mt. Gox
Adding to the market’s volatility, the ongoing saga of the Mt. Gox repayment plan has introduced further uncertainty. The notorious exchange, which collapsed in 2014 after a massive hack, is nearing the start of its long-awaited repayment process, set to commence in early July 2024.
According to a report, the exchange has confirmed that all regulatory measures have been implemented to ensure a smooth repayment process, providing long-awaited relief to creditors. Nevertheless, the market has responded nervously to these developments.
Last month, as Mt. Gox transferred 140,000 BTC to an unknown address in line with their repayment update, Bitcoin’s price plunged from the $70,000 range to $67,000 in just a few hours.
This incident underscores the broader sensitivity of Bitcoin’s price to external shocks, as highlighted by recent actions from the German government, which seized and sold 3,000 BTC but continues to hold over $3 billion worth of Bitcoin, yielding substantial unrealized profits.
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