Concerns Arise as Mt. Gox Releases $9 Billion Stash: Is Bitcoin Price Set to Plummet?

Bitcoin is under pressure as administrators of the defunct Mt. Gox exchange prepare to move $9 billion worth of BTC to creditors. This unexpected development has sent shockwaves through the crypto market, causing concern among traders. The impact is already evident, with BTC experiencing a 2.7% drop and the total market capitalization declining to $2.68 trillion.

Renowned crypto trader, Bleeding Crypto, has provided valuable insight into the situation. In a tweet, Bleeding Crypto highlights two crucial support levels that traders should keep an eye on. The first is the 50-day Exponential Moving Average (50EMA), which serves as the primary support. If that fails, traders should look to the reloaded Fibonacci Zone for guidance.

The looming possibility of Mt. Gox creditors selling off their Bitcoin holdings adds to the market’s anxieties. The fear of a massive sell-off causing a downward spiral in Bitcoin’s price is a significant concern. Traders are bracing themselves for the potential fallout, which highlights the fragility of the market.

Bitcoin’s price has been on a rollercoaster ride due to these developments. Within a 12-hour window, the price dropped by 4%, swinging from an intraday high of $70,600 to a low of $67,555. Despite the turbulence, trading volume has surged by 62% in the last 24 hours, indicating the market’s resilience.

Amidst the storm, Bitcoin manages to hold its ground, maintaining a market cap of $1.34 trillion within its multi-month range-bound channel. Traders are remaining vigilant and prepared for further twists in this gripping narrative.

For more exciting crypto news, don’t miss out on the explosive moves made by crypto whales, as altcoins rise while Bitcoin retreats.