Bitcoin may be gearing up for a prolonged correction period, facing pressure from Mt. Gox and the German government that could push its price below the key $60,000 mark.
According to well-known Bitcoin analyst Willy Woo, the leading cryptocurrency could experience a correction lasting up to four weeks before resuming its upward trend. In a recent post to his extensive following of over 1.1 million, Woo mentioned that Bitcoin’s price action might become mundane for a while before a potential surge.
This potential correction aligns with forecasts from crypto analyst Rekt Capital, who anticipates further downward pressure on Bitcoin’s price based on recent closing prices. The analyst highlighted the key weekly levels for BTC/USD in a report from June 17.
The announcement by Mt. Gox, a defunct cryptocurrency exchange, that it will begin repaying its creditors in July could add to the selling pressure on Bitcoin. With over $9.4 billion worth of Bitcoin owed to approximately 127,000 creditors, the market could see a significant influx of sell orders.
Additionally, a German-government labeled wallet moved a substantial amount of Bitcoin on June 19, further contributing to the potential selling pressure. Despite these factors, some analysts, like Jelle, believe that this may only be a temporary setback rather than a major correction.
It’s important to note that this article does not provide investment advice. Readers are encouraged to conduct their own research and exercise caution when making financial decisions.