Bitcoin (BTC) Price Continues to Slide as Miners, Mt. Gox Refunds, and Saxony Weigh

Bitcoin's price continued its decline on Thursday, as selling pressure from Bitcoin mining operators, Mt. Gox refunds, and actions from the German state of Saxony continued.

Bitcoin's price continued its downtrend on Thursday amid selling pressure from Bitcoin mining operators, Mt. Gox refunds, and actions by the German state of Saxony.

However, a crypto expert told Investing.com that the ongoing downtrend could be “a bear trap.”

Bitcoin's price has been falling since hitting an all-time high of $73,800 in March. The decline has been attributed to various factors, including a sell-off by early Bitcoin miners, the large-scale movement of tokens from wallets linked to the defunct Mt. Gox exchange, and the confiscation and subsequent sale of Bitcoin by the German government.

As a result of these events and the halving of miner rewards earlier this year, there have been concerns that major Bitcoin miners may start selling some of their holdings to break even.

The downtrend has seen Bitcoin's price drop by about 15% over the past month.

Bitcoin is currently trading above the $58,000 mark, having bounced from last week's low of $53,600. The cryptocurrency still remains in a technical downtrend from March's record high.

According to Eugene Cheung, head of institutions at Bybit, optimism remains for the medium-term outlook, but the cryptocurrency market is not immune to abrupt macro events that could significantly affect global market sentiments.

Cheung highlighted the importance of the $57,000 support level in recent times, with Bitcoin's price being held up by this line of defense.

“If the price can climb back above the 200-day moving average quickly, this recent decline could be considered a bear trap, and a rally higher could be expected,” Cheung told Investing.com.

Historically, market corrections have acted as healthy resets within ongoing bull markets, aligning with well-established trends. Cheung observed that there has been a decline in trading activity and crypto prices on centralized exchanges for nearly two months following the halving event in previous Bitcoin cycles, a pattern that has repeated in the current cycle.

“The market cycles can last 12 to 18 months after Bitcoin halving before producing a new cycle top. Despite common fears that 'this time is different,' the cyclical nature of markets often sees history not repeating but certainly rhyming.”

Cheung's analysis suggests that if Bitcoin fails to hold the $57,000 support level and跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破跌破

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