Bitcoin Shaky As Kraken Distributes Mt. Gox BTC: Back To $63,000?

Dalmas Ngetich•Wednesday, July 24, 2024•1 min read

Bitcoin is trending lower at press time, sinking below $66,000 yesterday. Of note, looking at the formation in the daily chart, the bear bar of July 23 is engulfing, wiping out gains of July 20 and 21. If anything, there should be concerns about whether buyers have what it takes to push back against this wave of liquidation. Should there be a confirmation of yesterday’s losses, forcing the coin below the crucial support, now resistance, tough questions will be asked.

Amid this sell-off, Bitcoin remains in an uptrend following the expansion from the second week of July. For now, BTC is up 20% from July lows. However, it is down 1% in the past day, adding 1% in the previous week. Of note, engagement is also suppressed, falling to $32 billion in the past day.

Bitcoin Daily Chart for July 24

Traders are closely keeping tabs on the following Bitcoin news:

Kraken, the crypto exchange, has begun distributing BTC to Mt. Gox victims. The compensation marks ten years of patience after the defunct exchange was robbed of billions worth of BTC in 2014.
One analyst notes that despite the recent price volatility, the average exchange volume flow is higher. If there is a spike of 11%, pushing exchange flow to 45%, it will exceed the average annual volume threshold. Usually, when this happens, prices tend to recover.

Bitcoin Price Analysis

The BTC/USD uptrend stands at a precarious state.

Though Bitcoin is up 20% from July lows, it remains under pressure, dropping below $66,000.

Conservative traders can consider staying away for now. A close above last week’s highs and, ideally, $72,000 will be crucial for trend continuation.

If sellers press on, the reaction at $63,000 will be crucial. A bounce will reinvigorate buyers, allowing BTC to bounce higher in alignment with last week’s gains.

If not, BTC could sink lower, even falling below $60,000.

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