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Bitcoin faces resistance at $67,000 amid to Mt. Gox transfer worries

  • US Spot Bitcoin ETF experienced inflows of 2,129 BTC worth $140.33 million.
  • A whale withdrew 1,300 BTC valued at $85.56 million from Binance on Wednesday.
  • Lookonchain shows that Mt. Gox transferred 47,229 BTC valued at $3.13 billion to three unknown wallets on Wednesday.
  • Tron Founder Justin Sun advocates for China to adopt Bitcoin in his X post.

Bitcoin (BTC) stabilizes around $66,000 on Wednesday after missing a close above $70,000 on Monday. Lookonchain reported that US Spot ETFs received inflows of 2,129 BTC worth $140.33 million, a whale acquired 1,300 BTC valued at $85.56 million from Binance, and Mt. Gox continued its creditor payments by transferring 47,229 BTC worth $3.13 billion to three unknown wallets. Additionally, Tron Founder Justin Sun urged China to adopt Bitcoin in post in X (formerly Twitter).

Daily digest market movers: Bitcoin drops as Mt. Gox moved 47,229 BTC

  • According to Lookonchain a whale, "12QVsf" withdrew 1,300 BTC valued at $85.56 million from Binance on Wednesday, totaling 5,800 BTC worth $387.88 million withdrawn from the exchange over the past two days.
  • Lookonchain reveals that Mt. Gox transferred 47,229 BTC valued at $3.13 billion to three unknown wallets on Wednesday, adding to the 61,559 BTC worth $3.89 billion it has moved since July 5 to exchanges like Bitstamp, Kraken, Bitbank, and SBI VC Trade for repayment. With Mt. Gox currently holding $5.23 billion in Bitcoin, these ongoing transfers are likely fueling FUD (Fear, Uncertainty, Doubt) among traders, which may be contributing to Bitcoin's recent price decline.
  • On Tuesday, US spot Bitcoin ETFs experienced inflows of 2,129 BTC worth $140.33 million.Monitoring these ETFs' net flow data is crucial for understanding market dynamics and investor sentiment.
  • Justin Sun, the founder of Tron, posted on his X handle, "China also needs to step up. Since President Trump pushed for Bitcoin, U.S. policies have warmed. China should make further progress in this area. Competition between China and the U.S. in Bitcoin policy will benefit the entire industry."

Technical analysis: BTC price retraces to daily support level 

Bitcoin price faced rejection at the weekly resistance level of $69,648 on Monday and retraced roughly 1% on Tuesday. At the time of writing, BTC trades slightly higher by 0.19% at $66,296.

If BTC continues to retrace, it could find support at the daily level of $64,913. If this support holds, BTC could rise 10% to retest its June 7 high of $71,997. 

On the daily chart, the Relative Strength Index (RSI) and the Awesome Oscillator (AO) indicators are trading above their neutral levels of 50 and zero, respectively. This robust momentum signals a strong bullish sentiment in the market.

BTC/USDT daily chart

BTC/USDT daily chart

However, a close below $62,736 and a break below an ascending trendline drawn from July lows would change the market structure from bullish to bearish by forming a lower low on the daily timeframe. Such a scenario might precipitate a 10% crash in Bitcoin's price to retest its July 12 low of $56,405.

Crypto ETF FAQs

An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.

Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.

Bitcoin spot ETF has been approved outside the US, but the SEC is yet to approve one in the country. After BlackRock filed for a Bitcoin spot ETF on June 15, the interest surrounding crypto ETFs has been renewed. Grayscale – whose application for a Bitcoin spot ETF was initially rejected by the SEC – got a victory in court, forcing the US regulator to review its proposal again. The SEC’s loss in this lawsuit has fueled hopes that a Bitcoin spot ETF might be approved by the end of the year.

Author

Manish Chhetri

Manish Chhetri is a crypto specialist with over four years of experience in the cryptocurrency industry.

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