Bitcoin aimed for a recovery ahead of Wall Street’s opening on July 5 as the market processed the commencement of Mt. Gox reimbursements.
BTC/USD 1-hour chart. Source: TradingView
Bitcoin’s bull run faces hurdles ahead
According to data from Cointelegraph Markets Pro and TradingView, Bitcoin (BTC) saw a 3.8% bounce from lows of $55,550 on Bitstamp. This marked its lowest point against USD since late February, amidst rising liquidations and a sentiment bordering on “extreme fear.”
Observers expressed surprise at the recent downturn, attributing it to the commencement of transfers from wallets linked to Mt. Gox’s rehabilitation process. “The initial transfers have begun. The market sold off again in response. Now, we must determine the extent of these sales and how the market absorbs them,” noted prominent trader Daan Crypto Trades.
As reported by Cointelegraph, the total funds involved in compensating Mt. Gox creditors exceeded $8 billion in Bitcoin and Bitcoin Cash (BCH). Daan Crypto Trades highlighted BTC/USDT’s adherence to a broad downward channel, a development even the typically cautious trader known as Il Capo of Crypto found promising. “Engagement with channels typically signals a corrective pattern (consolidation before continuation),” he commented.
BTC/USDT chart. Source: Daan Crypto Trades/X
Meanwhile, even optimistic voices within the trading community acknowledged tough times for hodlers. “Bitcoin’s higher timeframe market structure is being tested,” observed trader Jelle while analyzing the three-day chart.
BTC/USD chart. Source: Daan Crypto Trades/X
Ichimoku evaluates BTC’s monthly closing price
The most recent weekly candle added pressure to the bull market, as per the Ichimoku Cloud indicator’s perspective. At $56,150, the price slipped below the Kijun Sen trendline on weekly timeframes, with the weekly candle situated between it and the upper trendline, Tenkan Sen.
BTC/USD 1-week chart with Ichimoku Cloud data. Source: TradingView
Commenting on this setup, trader Titan of Crypto suggested that a monthly close below Kijun Sen would necessitate a reconsideration of the overall bullish market structure. “From an Ichimoku perspective, Bitcoin remains bullish unless a monthly candle closes below Kijun and confirms it with the subsequent monthly candle,” read a recent post on X.
BTC/USD chart with Ichimoku Cloud data. Source: Titan of Crypto/X
This article does not provide investment advice or recommendations. All investment and trading decisions involve risks, and readers should conduct their own research before making any decisions.