Mt. Gox and the new selling pressure created by the German government threaten to push Bitcoin’s price below the psychological level of $60,000, potentially leading to a month-long correction. According to popular Bitcoin analyst Willy Woo, Bitcoin may experience a four-week correction before continuing its price rise.
Notable Statements from a Famous Analyst
Popular analyst Willy Woo shared the following statements in a post to his over 1.1 million followers on social media platform X on June 22:
“Looking at this model, there will likely be a 1-4 week cooling period before Bitcoin’s price movement becomes sufficiently boring. In other words, Bitcoin’s price movement will witness a boring process, and then the price will rise.”
The potential monthly correction aligns with the predictions of popular crypto analyst Rekt Capital, who expects more downward pressure on Bitcoin’s price based on last week’s closing price. The analyst wrote in a report dated June 17:
“A Weekly Close below the blue level came before rejections from here, and the blue level will transition to a new rejection point. Bitcoin is potentially preparing itself for the same fate.”
Significant Developments on the Bitcoin Front
On June 24, the bankrupt crypto exchange Mt. Gox announced that it would start repaying its users in July. Mt. Gox owes approximately 127,000 creditors $9.4 billion worth of Bitcoin, which could create significant selling pressure for Bitcoin. According to Bloomberg’s senior ETF analyst Eric Balchunas, this situation could create significant selling pressure:
“This is like rejecting more than half of all ETF inflows at once.”
According to Arkham Intelligence, in addition to the upcoming selling pressure, a wallet labeled by the German government transferred approximately 6,500 Bitcoin on June 19. The wallet had held around 50,000 Bitcoin since February 2024, which is worth over $3 billion at today’s prices. However, other crypto investors like Jelle expect this to be only a temporary price drop rather than a deeper correction. The analyst stated in a June 24 post on X:
“Bitcoin’s daily RSI data hasn’t been this low in almost a year. The last time we saw oversold conditions, Bitcoin was trading at $26,000.”
