Bitcoin price analysis: BTC/USD declines are unstoppable; Mt. Gox triggers massive selloff on moving 8200 BTC
|- Four wallets belonging to Mt. Gox are reported to have moved 8200 BTC in 24 hours.
- BTC/USD must find a support above $8,500 to avoid further declines.
Bitcoin price is exploring new lows May, approaching $8,500 on Friday making it one the biggest selloff of the Month. The cryptocurrency has lost over $600 in one day while the losses could continue during the intraday trading today. It is suspected that Mt.Gox trustee, the establishment that was put in charge of liquidating approximately 200,000 BTC after Mt. Gox cryptocurrency exchange went bankrupt has moved about $8,200 triggering the current selloff.
The cryptocurrency market is very volatile, and movement of large sums even less than a billion dollars has the ability to impact the market and drastically affect asset prices. The impact escalates if the asset being sold in large amounts happens to be Bitcoin. Mt. Gox trustee has continued to move large sums of Bitcoin despite acknowledgement that such actions contribute to movements in a market that is highly volatile already.
The reports in the market today indicate that four wallets connected to Mt. Gox trustee transferred approximately 2000 BTC each in a period spanning 24 hours. The large amounts of Bitcoins are probably sold on exchanges to facilitate conversion into the local Japanese yen.
Bitcoin price has broken below $8,600 and is currently trading at $8,560. All the indicators are pointing towards continued downside corrections. BTC/USD must find a support above $8,500 to say no to declines into the $8,400 range as we approach the weekend trading session. A bullish momentum is forming on the chart, but the upside is capped below the descending trendline.
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