Bitcoin Cash (BCH) has experienced a notable price surge following news concerning the repayment to Mt. Gox creditors. The announcement led BCH to climb over 9%, reaching $390. Technical indicators project further increases if the cryptocurrency surpasses the $400 mark.
Mt. Gox Repayments Commence
The trustee overseeing the Mt. Gox case has confirmed that repayments to the creditors will begin in Bitcoin (BTC) and Bitcoin Cash (BCH). This follows the collapse of the exchange in 2014, which resulted in the loss of 850,000 Bitcoins. The repayments are scheduled to start in July, contingent on the completion of necessary information exchange and approvals with cryptocurrency exchanges.
An official statement indicated that the trustee has finalized the required information for the repayments. The exact schedule for these repayments will be determined by the order in which cryptocurrency exchanges complete the needed procedures.
This development is a significant milestone for the approximately 127,000 investors awaiting their claims. Mt. Gox currently owes its creditors more than $9.4 billion. The announcement is linked to a recent $9.6 billion Bitcoin transfer to a new wallet, further solidifying the connection.
What Will BCH’s Price Be?
Bitcoin Cash saw an almost 10% increase within 24 hours, climbing from a low of $344 on June 24 to $390 on June 25. This price jump suggests renewed interest from the creditors and a potential reversal of the downward trend.
However, BCH’s Relative Strength Index (RSI) stands at 38.76, indicating persistent selling pressure. The RSI recently dipped below 30, marking an oversold condition in the market. Key resistance levels to monitor include $424.77, which aligns with the 20-day moving average, and the lower Bollinger Band at $348, potentially serving as support.
Practical Implications for Investors
Investors should consider the following actionable insights:
- Monitor BCH’s price movement closely, especially around the $400 threshold.
- Be aware of the potential impact of Mt. Gox repayments on BCH’s market dynamics.
- Evaluate BCH’s RSI and Bollinger Bands to identify buying or selling opportunities.
- Stay updated on the timeline and progression of Mt. Gox repayment processes.
These factors could significantly influence BCH’s price trajectory in the near future.
