In a tumultuous 24 hours, the cryptocurrency market witnessed a significant drop with Bitcoin (BTC) plunging to $58,402. This decline followed the announcement of MTGOX refunds starting in July and BTC sales from Germany. Despite these events, which stirred fears of massive sell-offs, investors did not see a deeper dip in prices.
What Do the Experts Say?
Experts from QCP Capital have weighed in on the situation, suggesting that the market may have found its bottom. They noted that the recent test of $58,400 for BTC led to substantial liquidations in long positions, yet the overall trend appears to be upward. This indicates that bears should exercise caution in the upcoming days.
Will Selling Pressure Persist?
Analysts are closely monitoring the impact of 140,000 BTC hitting the market, predicting continuous selling pressure. With the high costs associated with holding perpetual and options positions, it’s presumed that current Mt Gox creditors are not hedged. However, the prospect of an Ethereum (ETH) ETF in July could offer some respite, as analysts recommend buying on dips and accumulating positions.
Key Takeaways for Investors
Investors can derive the following actionable insights:
- Monitor the $58,500 support level closely, as further declines may push BTC towards $52,336.
- Consider taking profits at potential recovery levels, particularly if BTC hits $64,500.
- Stay alert to on-chain signals, especially those concerning large transfers from Germany and MTGOX.
- Diversify portfolios to mitigate risks associated with high volatility.
If BTC successfully reclaims $64,500 as a support level, its next price targets could be $67,300 and $71,400. Nonetheless, investors should remain vigilant due to potential additional sell-offs influenced by the recent MTGOX and Germany news.
