Well-known cryptocurrency analyst and trader Crypto Jelle has provided insights on Bitcoin’s price action, the largest digital asset, highlighting the formation of a strong bullish flag despite significant BTC transfers, especially from the now-defunct Tokyo-based crypto platform Mt Gox.
Bitcoin Price Action Remains Firm Despite Mt Gox BTC Transfers
On Monday, the bankrupt Bitcoin Tokyo-based exchange Mt Gox conducted a series of significant BTC transfers to an unidentified wallet address. This marks the first movement of funds from the exchange in over five years, shaking the coin’s market and raising concerns about potential selling pressure.
The crypto platform moved around 141,000 BTC valued at approximately $9 billion to the unknown wallet address. Whale Alert, an on-chain analytics firm, reported that the BTC was transferred in six large transactions to the wallet address.
These transfers are seen as positive signs that users who have been unable to access their funds since 2014 may eventually recover their money. Mt. Gox, one of the world’s largest BTC exchanges, closed down in 2014 after losing approximately 850,000 Bitcoins worth $450 million in a hack, one of the biggest hacks in history, leading to the exchange’s bankruptcy.
Since then, creditors have been waiting for repayment, potentially adding selling pressure to the crypto markets. The transfers align with the exchange’s goal of repaying creditors by October 2024.
These large transfers caused a dip in Bitcoin‘s price on Monday by about 2% to $67,500 before recovering to $68,000. Despite the price drop following the transfers, Crypto Jelle confirmed the presence of a bullish flag in the crypto asset.
Moreover, the market is currently rangebound, with Crypto Jelle noting that breaking above $70,000 will signal a bullish trend. Therefore, patience is advised to avoid missing out on potential developments.
BTC Experiencing Bearish Movement
On lower timeframes, the digital asset shows sideways price action after failing to surpass the $69,000 resistance. Despite negative momentum across the cryptocurrency market, a strong recovery is anticipated soon.
Before the Mt Gox transfers, BTC was trading at $70,580. Currently, the price stands at $67,581, marking a 0.33% decline in the last 24 hours.
With a market capitalization of $1.33 trillion, its market capitalization has also dropped by the same percentage, while its trading volume decreased by over 16% in the past day to $27.64 billion.
Featured image from iStock, chart from Tradingview.com
