Bitcoin Cash Price Slides 5% on Escalating Mt. Gox Creditors Kraken Withdrawals
- The Bitcoin Cash price experienced increased selling pressure, sliding 5% following withdrawals after the successful distribution of BCH and BTC from Mt. Gox on Kraken.
Bitcoin Cash price dipped in value following the start of the Mt. Gox repayment program. Kraken, one of the Trustees, received 48,641 BTC from Mt. Gox and, shortly after, began disbursing the assets back to the victims.
Kraken CEO David Ripley confirmed the successful distribution of the assets back to creditors from his exchange. Following this distribution, creditors started withdrawing their BCH and BTC from Kraken.
Furthermore, Mt. Gox has transferred more BTC to the Bitstamp exchange, which could further influence market prices. As a result, BCH price is down 5% in the last 24 hours to $368.
BCH price action trended downward from its peak in mid-April, but recent price action indicates a potential reversal pattern may be forming.
The price appears to be completing the right shoulder of the inverse head-and-shoulders pattern, suggesting a potential bullish reversal.
A break above the neckline ($395) may result in a further upside swing to the next major resistance around $529, a 41% surge from its current price.
On its way up, Bitcoin Cash’s price may find resistance around $395 (the neckline), which also coincides with the 50-day and 200-day EMAs. On the flip side, if bears prevail, decent support exists around $360 and $300, where the price has bounced off multiple times.
The relative strength index (RSI) is at 46.44 and just crossed below its 14-day simple moving average (SMA), indicating bullish momentum on BCH price action may be reducing.
According to CoinStats, BCH trading volume is down 19% in the last 24 hours, showing reduced buying interest among investors.
Nevertheless, there was a notable increase in volume on the formation of the right shoulder, which signals accumulation and a potential upcoming breakout.
Overall, the technical indicators suggest the price of BCH may break to the upside only if there is a positive and significant change in the BCH buy pressure.
Mt. Gox Creditors Cashing Out BCH and BTC, Good Sign?
Mt. Gox recently began its repayment program for victims of a hack that happened years ago. The company will use five exchanges, including Kraken and Bitstamp, to reimburse its creditors as it is no longer in operation.
Reports from Kraken users on Reddit indicate the repayment is going well, as they have been able to withdraw their Bitcoin.
This is a good sign for the general crypto market as it indicates accountability by Mt. Gox and Kraken.
Arkham said Bitstamp received 5110 BTC ($340.1 million) from 4 separate wallet addresses.
UPDATE: MT. GOX MOVING $2.85B BTC
Mt. Gox moved a total of $2.85B BTC to new wallets this morning in order to distribute 5110 BTC ($340.1M) BTC to 4 separate Bitstamp addresses.
Bitstamp is one of the 5 exchanges that the Mt. Gox Trustee is working with to return funds to Mt.… pic.twitter.com/KsKuxMpvZS
— Arkham (@ArkhamIntel) July 23, 2024
Bottom Line
The recent 5% decline in the price of BCH coincides with increased withdrawal activity from Mt. Gox creditors on the Kraken exchange.
Nevertheless, the Bitcoin Cash price is aiming for higher targets, as a bullish market structure promises a 41% rally to $529.
