Bitcoin (BTC) Traders Target $50K as Billions in BTC Selling Pressure Looms
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- 2024-07-12 10:44:41374browse
BTC prices have nosedived more than 10% in the past seven days, CoinGecko data shows, falling below a critical technical indicator on Thursday and erasing all gains since the end of February.
Bitcoin (BTC) traders are targeting a drop to $50,000 as billions of dollars in BTC selling pressure looms on the horizon.
Fresh data from Bitstamp shows BTC trading at $54,800 at the time of writing, up 0.2% in the past 24 hours and down 13% in the past week. BTC has now fallen below the 200-day moving average, a key technical indicator, and erased all gains since the end of February.
However, traders are expecting the price to drop further as a German government entity and defunct crypto exchange Mt. Gox are set to sell billions of dollars in BTC.
“The German government still has over $2.3 billion worth of Bitcoin, Mt. Gox has more than $8 billion, and the US government has over $12 billion,” noted one trader.
Mt. Gox started returning bitcoin and bitcoin cash stolen from clients in a 2014 hack on Friday, sending BTC down 8% as traders reacted.
In addition, a wallet connected to the German Federal Criminal Police Office (BKA) has moved millions of dollars worth of bitcoin to crypto exchanges since mid-June. Traders say these movements imply an intention to sell the assets that were forfeited in 2013 from a piracy marketplace.
“The selling pressure is unlikely to decrease in the coming days,” said Rachel Lin, founder at on-chain crypto exchange SynFutures, in an interview.
“The market expects most Mt. Gox users to dump their tokens, but we might see a bounce back if the selling is lower than anticipated. On the other hand, if there is enough selling to push the price lower, we might be looking at the $50,000 level.”
The last time BTC traded at $50,000 was mid-February, when the cryptocurrency was attempting to break out of a month-long consolidation period. BTC eventually dropped to $43,000 in late February before beginning a recovery.
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