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Bitcoin falls to $61,175 amid market decline and Mt. Gox news, hitting oversold levels last seen in 2023, as analyst Van de Poppe predicts a potential rebound or further drop.
The crypto market has taken a sharp downward turn, with Bitcoin (BTC) leading the charge in a dramatic decline. In just the last day, the total market value of all cryptocurrencies plummeted by 1.40%, sinking to a current level of $2.24 trillion.
Amidst this downturn, BTC’s value has spiraled significantly, marking a new low of $61,175 as of press time. This significant drop represents a 17.82% decrease from its monthly peak of $71,656, recorded merely two weeks earlier.
Notably, this decline began early in the day, with Bitcoin initially priced at $62,590, only to plummet to an intraday low of $58,590. Despite a slight recovery, BTC now stands around the $60,000 mark, hinting at potential stabilization after a day of heavy losses.
Analyst Insights
Market analyst Michaël van de Poppe highlighted the severity of the situation, noting that Bitcoin is one of the most oversold assets currently, a condition last seen during major market upheavals such as the FTX crash and the August 2023 correction.
Essentially, Bitcoin’s daily RSI, standing at 30.93, adds weight to Van de Poppe’s assessment, clearly indicating that BTC is deeply entrenched in “oversold” territory.
#Bitcoin becoming the most oversold on the Mt. Gox news since a year.
Last two times it was:
– FTX crash.
– Correction in August '23.We're very close. pic.twitter.com/bTUhK6nHeM
— Michaël van de Poppe (@CryptoMichNL) June 24, 2024
Despite the bearish trends, Van de Poppe suggests that recovery could be on the horizon. According to his chart, Bitcoin is at a critical support zone, and if it holds, a rebound to as high as $70.3K could be possible. However, failure to maintain this level could cause the price to decline towards the $52.8K region.
MT. Gox Impact
Compounding the market’s volatility, the ongoing saga of the Mt. Gox repayment plan has added further uncertainty. The infamous exchange, which collapsed in 2014 after a massive hack, is nearing the commencement of its long-awaited repayment process, set to begin in early July 2024.
According to a report, the exchange confirmed that all regulatory measures had been implemented to ensure a smooth repayment process, giving creditors long-awaited relief. Nevertheless, the market has reacted nervously to these developments.
Late last month, as Mt. Gox transferred 140,000 BTC to an unknown address—an action aligned with their repayment update—Bitcoin’s price tumbled from the $70,000 range to $67,000 in just a few hours.
This incident echoes the broader sensitivity of Bitcoin’s price to external shocks, notably highlighted by recent actions from the German government, which seized and sold 3,000 BTC but continues to hold over $3 billion worth of Bitcoin, yielding substantial unrealized profits.