The defunct crypto exchange Mt. Gox has made headlines once again after executing a massive Bitcoin transfer. On Tuesday, the exchange moved a staggering 11,501.4 BTC, valued at approximately $1 billion, across two wallets. This marks the second major transfer by Mt. Gox in March, sparking concerns about imminent Bitcoin price volatility.
Breakdown of the Bitcoin Transfer
Blockchain analytics firm Spot On Chain reported that 10,608 BTC ($929.7 million) was transferred to a new wallet, while 893.4 BTC ($78.3 million) was sent to a warm wallet. This follows a previous Mt. Gox movement earlier this month, where 12,000 BTC was transferred when Bitcoin was trading at around $92,000. Since then, BTC has experienced a 7% correction and is currently hovering around $86,500.
Adding to market concerns, Mt. Gox recently deposited 332 BTC ($25.5 million) into the Bitstamp exchange, raising speculation that the 893.4 BTC in the warm wallet may soon follow. If this Bitcoin enters the market, it could influence BTC price action significantly.
Is BTC Price Volatility on the Horizon?
Market experts are closely monitoring Bitcoin’s next moves. Crypto analyst Ali Martinez has highlighted a crucial resistance level at $89,000. This level is significant as it aligns with Bitcoin’s 50-day moving average and a descending trendline from its all-time high.
According to Martinez, breaking above this resistance could trigger bullish momentum, pushing BTC higher. However, failure to breach this level may lead to extended consolidation or even a price pullback. Adding to bearish concerns, Bitcoin’s Relative Strength Index (RSI) recently entered the overbought territory—a signal that, in previous instances, has led to sharp corrections.
What’s Next for Bitcoin?
The TD Sequential indicator, known for accurately predicting market reversals, suggests that BTC could be approaching a short-term peak. This could encourage profit-taking, leading to heightened volatility.
Also Read: Mt. Gox Moves $1 Billion in Bitcoin Again – Is a BTC Price Crash Looming?
As Mt. Gox continues its creditor repayment process, investors remain wary of further Bitcoin movements. Will BTC bulls push past $89,000, or is another correction looming? Stay tuned as the market braces for the next big move.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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