Bitcoin was looking for a bounce when Wall Street opened on July 5, as the market digested the start of Mt. Gox refunds.
Bitcoin Bull Market: “The Road Ahead Is Rocky”
According to data from Cointelegraph Markets Pro and TradingView, the Bitcoin (BTC) price has bounced 3.8% from its low of $55,550 on Bitstamp.
This marked the lowest level for BTC/USD since late February as liquidations increased and sentiment neared “extreme fear.”
Market experts were surprised by the scale of the recent decline, but blamed it on transfers originating from wallets associated with the Mt. Gox rehabilitation process.
“The first transfer has started. After the transfer, the market sold off again. Now it’s time to figure out how much is sold off and how the market absorbs it,” popular trader Daan Crypto Trades wrote on X.
“It will be a bumpy road ahead, but removing this massive supply overhang will be a huge boon for the space in the long run.”
As Cointelegraph reported, the total funds used to distribute to Mt. Gox creditors amounted to over $8 billion in Bitcoin and Bitcoin Cash (BCH).
Daan Crypto Trades noted that BTC/USDT continues to follow a broad downtrend channel, which even crypto’s notoriously cautious trader Il Capo found encouraging.
He replied, “Interaction with channels generally implies a corrective pattern (integration before persistence).”
Meanwhile, even more hawkish voices within the trading community acknowledged that times were tough for holders.
Popular trader Zell admitted while analyzing the 3-day chart that “Bitcoin’s high-time frame market structure is being tested.”
“We are seeing lower lows at the moment. But it all depends on the candle close. It matches the weekly candle close. If it closes above $57,000, the structure is still bullish.”
Ichimoku, BTC Price Monthly Closing Forecast
The recent weekly candles have further pressured the bulls from an Ichimoku Cloud indicator perspective.
Related: Watch the Next Bitcoin Price Levels as $52K Supertrend Threatens to Fail
At $56,150, the price fell below the weekly baseline trend line, and the weekly candle was stuck between the baseline and the upper trend line, the Tenkan Line.
Popular trader Titan of Crypto suggested in his commentary on the setup that a close below Kijun Sen on the monthly timeframe would require a rethink of the overall bullish market structure.
“From an Ichimoku perspective, Bitcoin remains bullish as long as the monthly candle closes below the reference point and is not confirmed by the next monthly candle.” Here’s part of a recent X post.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.