Bitcoin 2% Drop Could Herald a Retracement to $58k as CME Gap Opens up
Bitcoin is down by almost 3% following its failure to see further price increases in the last 24 hours. The latest trend continues the previous day’s decline, which saw the coin lose $68k.
The latest decline is a surprise as many expect the market to react positively to the ongoing launch of ETH ETF. They expected the apex coin also to see a spillover of the bullish trend that resulted from it.
However, the candle representing the current intraday session shows no hint of bullish pressure, as there is nearly no noticeable wick sticking to the top.
The reason for the latest drop is another whale move by Mt. Gox. The defunct crypto exchange moved over $2.85 billion from its wallet to another. The latest move continues its bid to pay off its creditors. The transfer sent the market into panic mode as many traders anticipated a large selloff.
The exchange has not formally announced whether it will sell its holdings to pay off its debts. However, speculations are that it will send Bitcoin directly to its customers’ addresses. On the other hand, a Reddit poll showed that many creditors are looking to dump their payments once they receive them.
On-chain Data are Positive
On-chain data remain positive amidst the slight decline. For example, exchange reserves continue to decline, which is healthy for the asset as it shows more buying pressure in the last 24 hours. It also indicates that the latest drop is a result more fundamentals based than volume.
The number of unrealised profit is high which indicates that holders are waiting in anticipation of further surge and not selling yet. it is also the same sentiment in the US as Coinbase Premium is positive, showing that traders are bullish and accumulating. The same trend is also present in ETFs as they saw an over $500 million inflow.
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