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This week, bitcoin witnessed a substantial drop to $40,000 from its all-time high of $49,000, driven by concerns related to Mt. Gox and FTX, leading to uncertainty over its future direction.
The rise, fueled by CNA news of the acceptance and participation of major players like BlackRock, but some analysts predict bitcoin could retreat to as low as $31,000.
bitcoin price analysis and prediction.
bitcoin price is suffering a pullback following a strong rejection from the psychological level of $49,000. Despite facing challenges, bitcoin has successfully regained the psychological level of $40,000 after reaching a low of $38,500.
bitcoin holders find themselves in uncertain territory until the price breaks and holds conclusively above the $40,700 support in the three-day period. When examining the technical indicators, it is evident that bitcoin has broken through a critical resistance level.
The Stochastic RSI signals an overbought condition, reaching 90, which historically indicates an imminent correction. This observation is reinforced on the daily chart, further supporting the likelihood of a pullback.
The normal RSI on the weekly and daily charts reveals a bearish divergence, where the chart shows an upward movement while the RSI is trending downward, a signal often associated with a hidden bearish divergence.
Despite initial skepticism about the possibility of a significant move, bitcoin has seen a substantial drop.
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Taking into account the behavior of investors, when the stochastic RSI exceeds 70, investors usually sell, while a level below 30 encourages buying. The oversold phase means a period of accumulation, resulting in significant gains for those who bought strategically during the dip.
If the bulls prevail, a decisive move above $40,726 would pave the way for bitcoin price to break above $43,750 or, in very bullish scenarios, reclaim the $49,000 level. Extremely optimistic results could push btc beyond the psychological level of $50,000, last tested in December 2021.
On the other hand, with the Relative Strength Index (RSI) below 50 and continuing a downward trend, bitcoin price may extend its decline, potentially falling below the $37,800 support. Losing this level of buyer congestion could push btc towards the psychological level of $30,000.
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Mt. Gox bitcoin Payment News Sparks Market Concerns and Price Volatility.
Returning attention to recent developments, Mt. Gox's confirmation of bitcoin payment to creditors, initiated with bank payments in December 2023, raises concerns about a possible market sell-off. It is expected that a considerable amount of bitcoin and bitcoin Cash redeemed could have an impact on the market.
Looking back at historical events, such as the Mt. Gox incident in 2014, it is evident that bitcoin has the ability to bounce back despite challenging situations. Experts have different perspectives on how Mt. Gox Trustee handles bitcoin payments.
Some anticipate gradual payments occurring over several months, while others suggest a lump sum payment be made all at once. Mindao Yang stated: “Certainly, the selling pressure should be relatively limited. After all, many debts have been sold over the years and their prices have already been reflected in the market.”
In the last 24 hours, btc price has increased by 1% and is currently trading at $40,068. The 24-hour low and high are at $39,545 and $40,254, respectively. Furthermore, trading volume has fallen by 12% in the last 24 hours. Visit our guide to the best altcoins to buy now for 2023 here.
$1 Billion FTX Sell-Off: The Ripple Effect on bitcoin and Market Analysis
btc price fell after the approval of bitcoin ETFs. In theory, once FTX completes the sale of its significant holdings, the selling pressure could ease, considering that a bankruptcy estate liquidating holdings is a relatively rare occurrence.
Investors have dumped more than $2 billion from the Grayscale bitcoin Trust (GBTC) since its conversion to an exchange-traded fund earlier this month.
BREAKING: According to reports from CoinDesk, it appears that up to half of the $2 billion in GBTC outflows came from FTX liquidating its 22 million shares.
Additionally, FTX's sister hedge fund, Alameda Research, voluntarily drops its lawsuit against Grayscale Investments today. pic.twitter.com/zm9JgI5PEh
– bitcoin News (@BitcoinNewsCom) January 22, 2024
A substantial part of this exit involved FTX's bankruptcy estate selling 22 million shares, according to private data reviewed by CoinDesk and the opinions of two people familiar with the situation.
A multitude of bitcoin spot ETFs began trading on January 11, finally receiving approval from the US Securities and Exchange Commission after years of delays.
However, the Grayscale fund had already been around for a decade, structured as a less attractive closed-end fund, amassing nearly $30 billion in assets by the time the SEC gave the green light to transform it into an ETF, in addition to backing 10 bitcoin ETFs. newly created.
While recently launched funds by BlackRock and Fidelity have attracted inflows, GBTC has seen billions of dollars in bitcoin withdrawn. Data seen by CoinDesk indicates that FTX played a major role in this withdrawal. The 22 million shares he dumped, reducing FTX's GBTC ownership to zero, amounted to nearly $1 billion.
The price of bitcoin (btc) has fallen since the approval of the ETFs, a stark contrast to the high expectations before the SEC announcement. It was anticipated that bitcoin ETFs would provide a more accessible way for ordinary investors to enter the bitcoin market, leading to optimistic predictions for the btc price.
Instead, bitcoin has seen a drop. In theory, now that FTX has completed the sale of its significant holdings, the selling pressure could ease, considering that a bankruptcy estate liquidating holdings is a relatively rare event.
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