Bitcoin Cracks Forming: Will Mt. Gox Distribution Force A Sell-Off to $60,000?

Bitcoin is trending lower at press time, looking at the formation in the daily chart. For now, whether the coin will solidly reclaim $66,000 and convincingly close above last week’s highs for trend continuation remains to be seen. Before then, the path of least resistance will be southwards, at least in the short term.

Technically, bulls have the upper hand. However, the failure of buyers to soak in losses from earlier this week is a concern. Due to the selling pressure of July 24 and earlier today, Bitcoin is down, extending losses. The coin is down 4% in the past day and shedding 2% in the previous week. At the same time, trading volume continues to shrink, reaching $34 billion in the last day.

The following Bitcoin news events are dominating headlines:

• Even as millions of BTC are distributed by Mt. Gox, on-chain data, especially those linked to distributing exchanges like Kraken, shows that there has been no spike in spot trading activity. For this reason, buyers still have a chance since there is no panic selling.
• Riot Platforms, one of the leading Bitcoin miners, acquired Block Mining for over $92 million, per a press release on July 24. The objective is to increase the miner’s capacity, cementing its role in the Bitcoin mining scene.

Bitcoin Price Analysis

BTC/USD remains red when writing, but buyers dominate from the top-down preview.

Buyers have the upper hand as long as prices remain inside the bull bar and the trading range of July 15 to 21.

For this reason, aggressive Bitcoin traders can consider loading the dip, targeting $70,000 and $72,000 in the short term.

However, a close above $69,000 and last week’s highs could ignite buying pressure, accelerating the leg up to all-time highs.

If not, and sellers double down, any drop below $60,000 will cancel this bullish outlook.