Bitcoin sought a rebound as the market digested the start of Mt. Gox reimbursements. Data from Cointelegraph Markets Pro and TradingView tracked a 3.8% rebound in Bitcoin (BTC) prices from lows of $55,550 on Bitstamp, marking the lowest levels since late February.
Bitcoin Bull Market: “Rocky Road Ahead”
Market observers, while surprised at the latest downside extent, attributed the decline to the start of transfers from wallets affiliated with the Mt. Gox rehabilitation proceedings. Popular trader Daan Crypto Trades commented, “The first transfers have begun. The market sold off again following these transfers. Now comes the time where we’ll figure out how much is getting sold and how the market absorbs it. Rocky road ahead but after this massive supply overhang is cleared, that’s great for the space in the long run.”
BTC/USD 1-hour chart. Source: TradingView
The total funds involved in the distribution to Mt. Gox creditors exceed $8 billion in Bitcoin and Bitcoin Cash. Despite the sell-off, BTC/USDT continued to respect a broad downward trending channel, a sign seen as encouraging by some market participants.
Challenging Times for Bitcoin Holders
Even bullish voices within the trading community acknowledged the challenging times for Bitcoin holders. “Bitcoin’s higher timeframe market structure is being put to the test,” noted popular trader Jelle. He highlighted the importance of the three-day chart and emphasized the need for BTC to close above $57,000 to maintain a bullish structure.
Ichimoku Cloud and BTC Price Monthly Close
The latest weekly candle further pressured the bull market from the perspective of the Ichimoku Cloud indicator. At $56,150, the price fell below the Kijun Sen trendline on weekly timeframes, with the candle sandwiched between it and the upper trendline, Tenkan Sen.
BTC/USDT chart. Source: Daan Crypto Trades/X
Commenting on the setup, popular trader Titan of Crypto suggested that a close below Kijun Sen on monthly timeframes would require a rethink of the overall bullish market structure. “From Ichimoku’s perspective, unless a monthly candle closes below Kijun and confirms with the following monthly candle, Bitcoin remains bullish,” he stated in a recent X post.
The market continues to closely monitor the impact of Mt. Gox reimbursements and overall market sentiment as Bitcoin attempts to regain stability and upward momentum.
