Bitcoin’s price may soon dip below the crucial $60,000 mark due to fresh selling pressures from Mt. Gox and the German government. Noted Bitcoin analyst Willy Woo suggests a possible four-week correction period before the cryptocurrency resumes its upward momentum.
Why is a Correction Expected?
On June 22, Willy Woo addressed his 1.1 million followers on social media platform X, indicating a possible cooling-off phase for Bitcoin that could last between one to four weeks. He emphasized that this period would likely be marked by stagnant price movements before an eventual rise. This scenario aligns with predictions by another well-known crypto analyst, Rekt Capital, who foresees more downward pressure based on recent weekly closing prices.
Rekt Capital’s analysis from June 17 highlights the importance of Bitcoin’s closing prices relative to specific levels, suggesting that a failure to hold above these levels could lead to further declines. This perspective adds weight to the anticipated correction.
What Are the Key Influences?
The looming correction is influenced by significant developments on multiple fronts. Mt. Gox, the bankrupt crypto exchange, announced on June 24 that it would begin repaying its creditors in July. With approximately 127,000 creditors owed $9.4 billion worth of Bitcoin, the market could see immense selling pressure. According to Bloomberg’s senior ETF analyst Eric Balchunas, this scenario is comparable to rejecting a substantial portion of ETF inflows simultaneously.
Moreover, intelligence from Arkham indicates that on June 19, a wallet linked to the German government transferred around 6,500 Bitcoin. This wallet had held about 50,000 Bitcoin since February 2024, equating to over $3 billion at current prices. However, some investors like Jelle believe this might only cause a temporary dip rather than a prolonged correction.
Concrete Inferences
• Mt. Gox’s repayments might trigger massive Bitcoin sell-offs.
• German government’s wallet activity adds to the selling pressure.
• Short-term corrections are likely, but long-term trends remain uncertain.
• Monitoring Bitcoin’s RSI levels could provide trading insights.
Conclusion
As Bitcoin braces for a potential correction, market participants will be closely watching how these factors play out. Analysts encourage investors to prepare for short-term volatility but remain optimistic about Bitcoin’s long-term prospects.