Bitcoin (BTC) Price Holds $63k as $2.5B Mt Gox Outflows Triggers Seller Fatigue

Bitcoin Price Analysis

Bitcoin price dipping to $53,550 on July 5 could be the lowest for months, as suggested by CryptoQuant researchers. The firm’s recent institutional insights report says large sellers appear to have depleted their selling power, and key valuation metrics point to potential positive price movement in the weeks ahead.

Bitcoin Price Holds $63,000 Support

At the start of July, Bitcoin experienced significant selling activity, as traders sought to avoid downsides from the impending Mt Gox payouts.

While the dovish NFP and CPI data have triggered a 15% Bitcoin price rally in the past week, the sell-pressure is now being felt as the Mt Gox payouts are now being moved into several crypto exchanges.

The chart above shows how Bitcoin 17% price rally has stalled at $66,128 on July 17, before retracing 4% towards the $63,617 level at the time of writing on July18.

The selling pressure that triggered the 4% correction on Thursday remains linked to the German government’s yard sale and payouts to Mt Gox creditors.

Cryptoquant Insights Report: Seller Fatigue Suggests Bitcoin Price Bottom

Cryptoquant.com’s report explains that when traders’ unrealized profit margins hit -17% last week, prices typically bottomed out, mirroring patterns observed after the FTX exchange collapse in 2022.

This extensive selling led to realized losses of $2.5 billion, indicating seller fatigue. Consequently, the researchers note that bitcoin’s price surged to a high of $67,000, with indicators such as the Profit & Loss (P&L) Index and the Bull-Bear Market Cycle showing signs of recovery.

Despite the positive indicators, the analysis reports that stablecoin liquidity, particularly from tether (USDT), has not increased sufficiently to support a sustained price rally.

Cryptoquant’s report notes that USDT’s market cap growth remains near zero, contrasting with the 6.6% growth seen earlier in the year when BTC exceeded $70,000.

Bitcoin Price Forecast: Breaking $66,200 Could Trigger More Gains

Bitcoin (BTC) has experienced a notable recovery, currently trading around $63,876.04. The recent rally from the July lows has seen Bitcoin surge nearly 17%, hitting a high of $65,098.49 before retracing slightly. This recovery is marked by significant technical indicators that suggest further potential gains if certain resistance levels are breached.

The Parabolic SAR (Stop and Reverse) indicator currently suggests a bullish trend, with the SAR dots below the price, indicating an upward momentum. This trend aligns with the recent price action, which has seen Bitcoin recover from a low of around $55,726.83.

The Average Directional Index (ADR) at 0.71 also supports the idea of a stable upward trend, indicating that the current price movements are not erratic but part of a consistent pattern.

Key resistance is now at the $66,200 level. A decisive break above this resistance could trigger more gains, potentially pushing Bitcoin towards the $70,000 mark, which has been a psychological barrier for some time. If bulls manage to maintain momentum, this level might be tested soon.

On the downside, immediate support lies around $60,000. This level has acted as a strong support in the past and is likely to provide a safety net for any potential pullbacks. Further support is found at $57,500, near the Parabolic SAR level, which could act as a crucial buffer against any sharp declines.