Well-known cryptocurrency analyst and trader Crypto Jelle has offered insights on the price action of Bitcoin, the largest digital asset, pointing out the formation of a strong bullish flag, despite a wave of massive BTC transfers, particularly 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 carried out a series of significant BTC transfers to an unidentified wallet address. This marks the first on-chain movement of funds from the exchange in more than five years, and it has effectively rattled the coin’s market as a whole, raising worries about possible selling pressure.
Specifically, the crypto platform moved about 141,000 BTC, valued at approximately $9 billion, to the unknown wallet address. Whale Alert, an on-chain analytics firm, reported that the BTC above was transferred in 6 large-scale transactions to the wallet address.
These transfers are interpreted as encouraging signs that consumers who haven’t been able to access their money since 2014 may eventually get their money back. Following the disclosure that it had lost hundreds of thousands of BTC in a hack, Mt. Gox, one of the leading BTC exchanges in the world, shut down in 2014.
During the devastating attack, roughly 850,000 Bitcoins were stolen, which was worth $450 million at the time. This incident, which is still among the biggest hacks in history, ultimately led to the exchange’s bankruptcy that year.
Since then, creditors have been waiting for their funds to be repaid, often seen as adding selling pressure to the crypto asset’s markets. The transfer seems to align with the exchange’s goal of paying back creditors by the end of October 2024.
These large-scale transfers ultimately led to a dip in Bitcoin‘s price on Monday by roughly 2% to $67,500, before recovering the $68,000 price again. Despite the price drop recorded after the transfers, Crypto Jelle has confirmed that the crypto asset still holds the bullish flag.
Furthermore, the crypto expert noted that the market is currently rangebound. However, should prices break above the $70,000 level once more, it will immediately turn bullish. As a result, Crypto Jelle has urged the community to be patient so that they do not miss out on the development.
BTC Experiencing Bearish Movement
On low timeframes, the digital asset displays sideways price action after failing to breach the $69,000 barrier again. Despite the entire cryptocurrency market’s adverse momentum, a strong recovery is still anticipated to occur soon.
Before the Mt Gox transfers, BTC was trading at $70,580. Today, the price trades at $67,581, indicating a 0.33% decline in the last 24 hours.
Valued at $1.33 trillion, its market capitalization has also dropped by the same percentage, while Its trading volume has decreased by over 16% in the past day to $27.64 billion.
Featured image from iStock, chart from Tradingview.com