Bitcoin (BTC) is plummeting! But what's causing all this chaos? It's all down to the now-closed Mt. Gox exchange. After years of silence, Mt. Gox has suddenly made a move that has traders worried. Why? Because they're about to release $9 billion worth of Bitcoin onto the market. Is this a golden opportunity or a recipe for disaster?
The cryptocurrency market reacted swiftly, with BTC falling 2.7%, reducing the market cap to $2.68 trillion. Analysts’ warning signals were borne out in this market drop, highlighting the impact of Mt. Gox’s looming presence.
Key support levels to watch
Well-known crypto trader Bleeding Crypto has joined the fray and is offering up some key advice. Through a tweet, Bleeding Crypto has revealed a key support level for BTC amid the Mt. Gox revival.
Bleeding Crypto highlights two key support levels for cautious traders: the 50-day exponential moving average (50EMA) stands as key support, followed by the reloaded Fibonacci zones as support for traders predicting Bitcoin’s path.
Liquidation Concerns Rise
The looming threat of Mt. Gox creditors liquidating their bitcoin holdings has heightened market anxiety, with fears of a rush to sell looming large and potentially putting downward pressure on bitcoin prices.
The possibility of market turmoil from Mt. Gox has raised uncertainty among traders, with market fragility becoming more apparent as traders brace for the potential impact.
BTC price is like a rollercoaster
Bitcoin experienced a 4% price drop within 12 hours, fluctuating from an intraday high of $70,600 to a low of $67,555. Despite the turmoil, trading volume increased by 62% in the past 24 hours, reflecting the resilience of the market.
Despite the storm, Bitcoin has held its ground after months of range-bound trading, with a market cap of $1.34 trillion, and traders are on high alert for further developments in this intriguing saga.
Also see: Crypto Whales Explode: Altcoins Rise as Bitcoin Retreats!
