Bitcoin Down 22% Over the Past Month: Where Could It Bottom?

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Market Analysis by Investing.com (Günay Caymaz) covering: BTC/USD. Read Investing.com (Günay Caymaz)'s Market Analysis on Investing.com

Institutional response in reopening US markets and economic data could determine Bitcoin's next move.prices plummeting in recenty. The primary culprit appears to be the initiation of creditor payouts by Mt. Gox, the defunct cryptocurrency exchange. This large-scale BTC liquidation has spooked investors and triggered a wave of selling, pushing the price near its yearly lows.

The ongoing Mt. Gox payouts raise the possibility of continued price drops as investors anticipate further selling. This could be exacerbated by ETF sales triggered by a bearish market perception. Despite the current negativity, a recovery wave for Bitcoin remains possible once the selling finds equilibrium. This will likely hinge on positive developments and a confirmation of potential recovery through technical indicators.The weekly chart reveals a sharp decline in Bitcoin after losing the $60,400 support level. The next significant support lies around $50,400. Should Bitcoin close below this level on the weekly chart, the price could drop further to $43,900, aligning with the Fib 0.

 

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