Bitcoin Will Keep Falling as Mt. Gox Exchange Moves $2.7B Worth of BTC

Coinglass data shows that the cryptocurrency market has seen $197 million in liquidations in the last 24 hours. Bitcoin, Ethereum, and Bitcoin Cash have experienced an ongoing decline over the past week, down by 7.53%, 12%, and 16% respectively.

Cryptocurrency markets experienced heavy liquidations over the past 24 hours, totaling $197 million, according to data from Coinglass.

The decline can be attributed, in part, to the Mt Gox exchange’s movements of Bitcoin, valued at around $2.7 billion, as it prepares for creditor payouts later in July.

As of July 5, liquidations spanned 230,541 traders on centralized exchanges. Among them, Bitcoin led in terms of total liquidated volume, with the majority being long positions.

Bitcoin price to continue falling

As highlighted by Bankless Times, Bitcoin formed a giant double-top chart pattern. The first occurred over March-April at around $72,200, while the second occurred in June.

Considering the possibility of the flagship crypto losing key support at $50,000, the selloff is expected to continue to about $44,000 in the near term. Having crashed below the 200-day moving average on Monday, Bitcoin may form a death cross.

Ethereum also saw a significant decline, with positions valued at $163.4 million getting liquidated as of July 5. Again, the majority of them were long positions. At the time of writing, ether trades below $3,000.

News regarding ether ETFs, which were largely expected to be approved by July 4, failed to materialize. As a result, ETH price is expected to decline further, with TradingView technical indicators showing a strong sell.

Due to its smaller investor base, Bitcoin Cash faced stronger selling pressure. Both the 50- and 200-day moving averages are trending downward.

Volatility doesn’t change Bitcoin’s ‘core thesis’

In a recent interview with The Block, Ben Caselin, chief marketing officer at VALR, expressed his view that momentary market volatility will not change Bitcoin’s “core thesis.”

He stated that while we might expect prices around $50,000 in the near term, the current price movements are only concerning to short-term investors. However, this view seems to contrast with the observed liquidations, which were predominantly long positions.

The legacy of Mt. Gox

Data from Arkham Intelligence showed that the now-defunct exchange Mt. Gox moved Bitcoin valued at $2.71 billion to a wallet address, which then proceeded to redistribute the funds.

At the end of May, Mt. Gox moved Bitcoin, valued at around $840 million at the time, into a new wallet address.

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