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- CEO of CryptoQuant, Ki Young Ju, believes fears of Bitcoin sell pressure due to Mt. Gox are overestimated and will not disrupt the ongoing rally.
- Meanwhile, futures traders’ confidence has been bolstered, with Bitcoin Open Interest (OI) spiking by 13% over the past five days.
Shrugging off all the fears of the Mt. Gox distribution, the Bitcoin price has rallied by another 4% moving past $65,500 levels on Tuesday, July 16, while extending the broader market rally, per the CNF report. As of press time, bitcoin is trading 4% up at $65,212.95 and a market cap of $1.286 trillion.
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Over the last 24 hours, the Bitcoin price experienced some volatility as the defunct crypto exchange Mt. Gox started moving Bitcoins to exchanges like Kraken as part of its repayment process. As per reports, Mt. Gox moved a total of $2.8 billion to exchanges.
With the Bitcoin sale by the German government behind us, investors now remain worried about how much of the $9 billion in distribution will Mt. Gox send to the creditors. Investors believe that these Bitcoins will soon hit the markets after a decade of waiting creating further selling pressure.
Ki Young Ju, CEO of crypto analytics firm CryptoQuant, contends that fears of sell pressure are “overestimated” and will not disrupt the ongoing crypto rally. He added:
I believe this distribution won’t end the bullish trend, as the coins are expected to react to market sentiment similarly to the existing bitcoin supply. Unlike the German government selling, Mt. Gox creditors aren’t forced to sell, so it’s not purely sell-side liquidity.
Renowned crypto and macro analyst Alex Krüger predicts that Bitcoin could experience a maximum price drop of 10% if creditors decide to sell their reclaimed assets en masse.
Bitcoin Price Heading to $71,500 After Recent Breakout
After breaching the $65,000 level on Tuesday, the Bitcoin price could be further heading to $71,500 as per the latest report from Rekt Capital.
“Breaking $65,000 would signal that the price is ready to move within the $65,000-$71,500 range,” wrote pseudonymous crypto trader Rekt Capital in a July 16 X post when Bitcoin was just below $65,000.
Rekt referenced their Bitcoin price cluster chart, which divides price ranges into separate boxes, highlighting previous instances when Bitcoin broke the $65,000 barrier and approached the $71,500 level. This pattern has already occurred four times this year hinting at bullish action ahead, as reported by Crypto News Flash.
Bitcoin has just about Daily Closed above $65,000 (blue)
BTC will now try to retest this level & hold it as support
Successful retest could very well form the beginning of a new cluster between $65,000-$71,500 (red)
Price stability is crucial now$BTC #Crypto #Bitcoin https://t.co/5wOXpM5vDA pic.twitter.com/IUpEm5tqev
— Rekt Capital (@rektcapital) July 17, 2024
However, a substantial number of short positions are at risk of liquidation at the $71,500 mark, indicating that many futures traders are currently confident the price won’t reach that level.
CoinGlass data shows that approximately $1.47 billion in short positions would be wiped out at $71,500.
Despite this, confidence among futures traders has been restored over the past five days, with Open Interest (OI)—the total number of outstanding Bitcoin options contracts yet to be executed—spiking by 13% during the same period.
On the other hand, as reported by CNF, institutional investors have scooped 100K Bitcoin over the past weeks followed by strong inflows in spot ETFs recently.
