The crypto market has remained largely suppressed in the last two weeks. Bitcoin price is on the verge of touching $60,000 from the peak of $70,000 reached after May’s CPI data release, showing that inflation continued to ease in the US.
As Bitcoin and altcoins search for liquidity and bottoms, investors are counting losses. The wave of declines will likely become stronger following a new report regarding the defunct exchange Mt. Gox set to begin distributing payments to creditors in Bitcoin and Bitcoin Cash (BCH).
Bitcoin Price Downside Risk Intensifies As Mt. GOX Schedules Payments
Mt Gox, once a dominant Bitcoin exchange (handling over 70% of trades), rose to fame in 2010. However, by 2014, it shut down after admitting to losing hundreds of thousands of Bitcoins due to hacks and mismanagement.
The event significantly impacted the early cryptocurrency market, leaving many investors counting dumbfounding losses. After a decade of the bankruptcy process, the Rehabilitation Debtor (Mt Gox Co., Ltd) and the Rehabilitation Trustee (Nobuaki Kobayashi Attorney-at-law) have announced the commencement of payments which will be done in BTC and BCH.
According to the press statement released on June 24, the Trustee “has completed the exchange and confirmation of the required information for implementing the payments.”
The payments set to kick off on July 2 sent jitters across the crypto market as investors feared heightened volatility. Bitcoin and altcoins are already facing strong headwinds due to macro factors like interest rate cuts and investor weariness.
Data by CoinGecko shows Bitcoin price trading at $61,038, down 5% in 24 hours, 7% in seven days and 12% in a month. Ethereum price had also run into strong headwinds, losing 5% of its value to $3,315 on Monday. Due to the rampant losses, the total market cap corrected to $2.359 trillion from $2.785 trillion posted on June 5.
Crypto market cap | CoinGecko
Bitcoin Faces Unprecedented Risk As Downtrend Points To $46,000
Support at $60,000 is critical for the much-needed trend reversal. However, the formation of a double top pattern around $70,000 escalates the risk of Bitcoin diving to $46,000.
On top of the double-top pattern which could become active if $60,000 support is breached, a death cross pattern on the same daily chart points to more pain. When this pattern comes into the picture, it hints at a sustained downtrend.
Bitcoin price chart | Tradingview
This downward price action coincides with the oversold Relative Strength Index (RSI). With the RSI below 30, bulls have a limited chance to stop declines at $60,000. Otherwise, Bitcoin may be forced into an extended spiral bringing into effect the double-top pattern targeting $46,000.
A few factors could help with Bitcoin’s recovery including the soon-to-start trading Ethereum ETF. Should market sentiment improve, and investors regain confidence in buying dips, BTC will be up for a stronger trend reversal to above $70,000 and to new all-time highs.
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John is a seasoned crypto expert, renowned for his in-depth analysis and accurate price predictions in the digital asset market. As the Price Prediction Editor for Market Content at CoinGape Media, he is dedicated to delivering valuable insights on price trends and market forecasts. With his extensive experience in the crypto sphere, John has honed his skills in understanding on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the dynamic metaverse landscape. Through his steadfast reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
