Bitcoin OverSold.
Bitcoin, the largest and most influential crypto currency always set the trend for whole market. People says " when Bitcoin moves, everything moves. The current year remains special as it was halving season and Bitcoin touch it's ATH price $77K. It is legitimacy and significance of Bitcoin that has confidence of users over the years and upto now people feels proud on invest in Bitcoin.
Recently Bitcoin seen oversold in market which cause some fluctuations and price drops to $64K. Bitcoin dropped around 19% then it's peak price in last month and currently have another dip. There are three main reasons behind that dump.
US government moves almost 4200 Bitcoin to the Coinbase from its seize account. The seizer portfolio belongs from different illegal activist individuals which caught up by US officials on money laundering cases especially to non listed organization or terrorist groups. Although it is not a huge amount of Bitcoin which has impact over whole trading volume but speculations works more rapidly in crypto due to its sensitive nature so people react so quickly to pull out the hand from it. This move is not last one , according to press release more Bitcoins are ready to shuffle from US account to Coinbase in coming days so the price can touch $55K as prediction rumored. We know that USA government has around 200K Bitcoin in his custody or ownership which is largest portion in the world.
Second dump seen by German officials which also send around $25 millions of worth Bitcoin to kraken and Coinbase as well. This factor also a reason in current drop of 9% of June month. Now that Bitcoin Also drop down from BKA ( official Police investigation account) , seize account and possibly from a victim in money launderers.
Investors are under fear of probability to dump by creditors of Mt. Gox. Actually people of Mt.Gox received huge amount of Bitcoin redistribution for which they wait for nine years from 2015. According to trust official around 140K Bitcoin will come under that redistribution plan which definitely will go to exchanges or atleast 50% of that volume possibly can hit the Deck of exchanges. Now the market can go further in red carpet if they dump that quantity of Bitcoin into exchanges.
The above mentioned factors creating oversold pressure in Bitcoin and the hype in pressure making it difficult to Corelate the stability.
Conclusion.
The selling pressure will remain constant especially in first week of July as Mt.Gox redistribution falls from First date. Then if quick correction didn't took place , the price of Bitcoin will go further decrease. It can bow down till $55K as expected. If market beers the selling pressure and some whales or institutional buying gets place then may it goes smothering run at the line of +-$65K.
Note: I am not a financial advisor , all the things analysis in article are base on News, facts and personal experience. So DYOR before any deal / trade or investment.
That's all for today. Like , upvote and leave comment for feedback.
Lead image taken from Pixabay.
Cheers,
Amjad
28-06-2024
Good