Bitcoin price struggles around $66,000 as Mt. Gox funds movement weigh
- Mt. Gox funds movement on Wednesday may negatively impact Bitcoin's price.
- Bitcoin Magazine reports speculation that Kamala Harris might attend the upcoming July Bitcoin Conference with Donald Trump.
- US spot Bitcoin ETFs registered slight outflows on Tuesday.
Bitcoin (BTC) price struggles around $66,000 on Wednesday. US spot Bitcoin ETFs experienced minor outflows on Tuesday, coinciding with the continued movement of Mt. Gox funds for repayment, which could exert downward pressure on Bitcoin's price.
Daily digest market movers: Bitcoin declines 2.36% on Tuesday as Mt. Gox starts repayment
- Data from Lookonchain indicates that Mt. Gox moved 37,477 BTC, valued at $2.47 billion, on Wednesday. Since July 5, Mt.Gox has transferred 52,549 BTC worth $3.31 billion to Bitstamp, Kraken, and Bitbank for repayment. With Mt. Gox currently holding $5.95 billion in Bitcoin, this continued transfer of funds likely sparked FUD (Fear, Uncertainty, Doubt) among traders, potentially contributing to Bitcoin's price decline.
Mt. Gox moved 37,477 $BTC($2.47B) again 30 minutes ago!#MtGox has transferred 52,549 $BTC($3.31B) to #Bitstamp, #Kraken, and #Bitbank for repayment since July 5.https://t.co/f2q66eQfEM pic.twitter.com/vZVdCWHwG1
— Lookonchain (@lookonchain) July 24, 2024
- On Tuesday, US spot Bitcoin ETFs experienced outflows totaling $77.80 million. During this period, Grayscale (GBTC), ARK 21Shares (ARKB), and Bitwise (BITB) decreased their holdings by 404.45 BTC, 774.82 BTC, and 1,040 BTC, respectively, while Blackrock (IBIT) added 1,070 BTC.
- This decline suggests a slight weakening of investor confidence, potentially contributing to a temporary dip in Bitcoin's price on Tuesday. The net inflow data from ETFs is crucial for assessing investor sentiment and understanding market dynamics. Together, the 11 US spot Bitcoin ETFs currently hold reserves amounting to $53.16 billion in Bitcoin.
Bitcoin Spot ETF Net Inflow (USD) chart
- According to Bitcoin Magazine, there is speculation that Democratic nominee Kamala Harris might share the stage with Donald Trump at the upcoming Bitcoin Conference, which is scheduled for July 25 to 27. If confirmed, her participation could set the stage for a significant showdown in the upcoming presidential race, especially amidst concerns among Democrats about Trump's growing appeal among crypto-investor voters.
JUST IN: #Bitcoin 2024 Conference CEO David Bailey is in talks with Kamala Harris campaign for her to speak at the event.
— Bitcoin Magazine (@BitcoinMagazine) July 23, 2024
"They’re making up their minds today." pic.twitter.com/UjFWAAEpWy
- According to CryptoQuant, UTxO Realized Price Age Distribution is a set of realized prices and age bands. The metrics help investors to overview each cohort's holding behavior by overlaying a set of different realized prices. Realized price is calculated as Realized Cap divided by the total supply.
- In BTC's recent movement, the price briefly dipped and stabilized at nearly $65,915. This range is close to the average purchase price of $66,500 for 1-3 month BTC holders, potentially serving as a support level.
- However, further correction could see support around the $63,800 level, reflecting the average purchase price range of 3-6 month holders.
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Bitcoin UTxO Realized Price Age Distribution chart
Technical analysis: BTC faces rejection around the $67,000 mark
Bitcoin’s price faced resistance around the weekly resistance level at 67,209 and declined by 2.3% on Tuesday. At the time of writing, BTC retraces and trades at around $65,632 on Wednesday.
If BTC continues to retrace, it could find support at the daily level of $64,913, coinciding closely with the 61.8% Fibonacci retracement level at $64,921, derived from the June 7 high of $71,997 to the July 5 low of $53,475. This would establish a critical zone of support that should be monitored closely.
If this area of support at $64,913 holds, BTC could rally 11% to retest its June 7 high of $71,997.
On the daily chart, the Relative Strength Index (RSI) and the Awesome Oscillator (AO) are trading above their neutral levels of 50 and zero, respectively. This robust momentum signals a strong bullish sentiment in the market.
BTC/USDT daily chart
However, a close below $62,736 and a break below the ascending trendline formed by joining multiple swing lows from July 5 would break the market structure from bullish to bearish by forming a lower low on the daily timeframe. Such a scenario might precipitate a 10% crash in Bitcoin's price to retest its July 12 low of $56,405.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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