In the dynamic world of cryptocurrency, Bitcoin has experienced a significant downturn, shedding 8.55% of its value in the past day alone. The market sentiment has turned cautious, with the fear and greed index plummeting to a mere 29.
Leading the digital currency pack, Bitcoin has been on a downward trajectory over the past month, reaching a four-month nadir with a drop of 8.55%, landing at $53,485. This downturn coincides with the infamous Mt. Gox exchange initiating Bitcoin repayments to its long-awaiting creditors.
According to Arkham Intelligence, Mt. Gox’s wallets transferred a staggering 47,229 BTC, valued at $2.7 billion, to an alternate wallet just yesterday. PeckShieldAlert reports that the exchange moved 1.55K BTC, equivalent to $85 million, to Bitbank.
The saga of Mt. Gox, which declared bankruptcy in early 2014 after misplacing approximately 740K Bitcoin, has reached a pivotal chapter as the exchange commences repayments via the Rehabilitation Trustee. Presently, Mt. Gox’s Bitcoin reserves stand at 141.687K BTC, worth an impressive $7.68 billion, with their latest transaction valued at about 151.15 million.
The broader crypto market cap has taken a hit, dropping by 9.19% within the last day. The bears have overshadowed any bullish momentum, with Bitcoin’s price slipping below the $55K threshold. At the time of writing, Bitcoin’s trading price hovers at $54,332. The daily trading volume has surged by 46.36%, reaching $49 billion, as per CMC data. In a notable development, nearly $225.15 million in Bitcoin was liquidated from the market in the last 24 hours.
Despite the bearish pressure, Bitcoin’s price has seen an 11% decline over the past week. The week commenced with Bitcoin above $60K, but the cryptocurrency has been unable to maintain its bullish stance against the persistent bears, resulting in a steady descent to $54K. The Bitcoin Fear and Greed Index stands at 29, signaling widespread apprehension among investors.
A closer look at the 24-hour price chart reveals that the short-term 9-day moving average (9MA) corroborates the current bearish trend. The daily Relative Strength Index (RSI), positioned at 24.45, indicates that Bitcoin is currently oversold.
**Bitcoin Price Chart (Source: TradingView)**
Should the Bitcoin bulls overpower the bears, we could see resistance forming at $54,216, with the subsequent barrier at $54,608. On the flip side, if Bitcoin succumbs to a bearish onslaught, support may emerge at $53,640, with a potential further decline to the $53,200 zone.
In parallel, Bitcoin Cash (BCH) has witnessed an 18% decrease, now trading at $293, as Mt. Gox prepares to process repayments in both Bitcoin and Bitcoin Cash.
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