Highlights:
- Bitcoin has bounced back after a slight dip in the last 48 hours
- The dip was triggered by the distribution of over $3 billion of Mt. Gox Bitcoin
- BTC eyes $71K as the market absorbs Mt. Gox Bitcoin
Bitcoin is showing signs of continuing its bull trend following a slight dip in the past two days. After dropping from a high of $68,461 on July 22 to a low of $65,581, Bitcoin has now recovered and is trading above $66,000. At the time of writing, Bitcoin was trading at $66,442, indicating a positive shift in the market.
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Bitcoin Distribution and Market Resilience
The recent two-day dip in Bitcoin’s price was triggered by the start of Mt. Gox Bitcoin distribution. On July 22, Mt. Gox moved $130 million worth of Bitcoin through Bitstamp and another $2.5 billion through other exchanges like Kraken. Despite this significant movement of Bitcoin, the price impact was minimal, instilling confidence that the market could absorb the Mt. Gox Bitcoin without a significant price disruption. This is evident as Bitcoin’s price is rising today, despite Mt. Gox moving another $3 billion worth of Bitcoin.
Impact of Mt. Gox Bitcoin
The market’s ability to absorb the Mt. Gox Bitcoin suggests that the impact of these distributions will diminish over time as the amount of Bitcoin held by Mt. Gox decreases. This is supported by Bitcoin’s daily chart, which indicates the early stages of a bull rally with higher lows, meaning that every slight dip is being bought. After yesterday’s dip to $65,581, Bitcoin is back in the green, trading above $66,000.
Key Levels to Watch
If Bitcoin maintains this momentum, the next critical level to watch is the $71,174 resistance. Breaking this resistance could pave the way for Bitcoin to return to its recent all-time high of $73,000 in the short term.
Conversely, if the Mt. Gox Bitcoin overwhelms the market and triggers a selloff, the critical level to watch would be the $63,864 support. A breach of this support could lead to a drop to $60,000 in the short term.
BTC Eyes $71K Resistance as Mt. Gox Impact Wanes
However, the likelihood of Bitcoin reaching the $71,174 resistance is higher. The market has shown resilience, absorbing the Mt. Gox Bitcoin without significant selloffs. As Mt. Gox’s Bitcoin holdings continue to decrease with each distribution, its impact on the market will lessen both in reality and perception. This decreasing impact is a positive sign for Bitcoin’s bullish outlook.
Bitcoin ETFs Inflows
Adding to the bullish sentiment, Bitcoin ETFs have recorded significant inflows. On July 22, Bitcoin ETFs saw $530 million in inflows, the highest in over seven weeks. This influx highlights the strong demand for Bitcoin and suggests that the uptrend will become more pronounced over time.
NEW: 🇺🇸 US #Bitcoin ETFs saw $530 million in inflows yesterday, the highest in over 7 weeks.
Whales are back 🚀 pic.twitter.com/RJ7KMCJ813
— Bitcoin Magazine (@BitcoinMagazine) July 23, 2024
The continued confidence in Bitcoin is reflected in the market’s ability to absorb large quantities without substantial price drops. This resilience and significant ETF inflows point to a strong and sustained demand for Bitcoin.
A Recap on Bitcoin Price
Bitcoin is showing signs of resuming its bullish trend after a brief dip caused by Mt. Gox’s Bitcoin distribution. The market’s ability to absorb these large quantities of Bitcoin without significant price disruption indicates solid demand. With Bitcoin trading above $66,000 and poised to test the $71,174 resistance, the outlook for Bitcoin remains positive.
As the amount of Bitcoin held by Mt. Gox continues to decrease, its impact on the market will diminish, further supporting Bitcoin’s bullish momentum. The significant inflows into Bitcoin ETFs reinforce the strong demand and suggest that the uptrend will become more evident over time. Investors should watch the critical levels of $71,174 and $63,864 to gauge the short-term direction of Bitcoin’s price.
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