Bitcoin stays inside an uptrend from a top-down preview, the performance within the each day chart, especially in Q1 2024. Bulls seem like taking on, with the coin floating above $60,000.
There Is Oversupply In Bitcoin: Will Prices Fall?
Not everyone seems to be convinced that the uptrend will last, not less than based on on-chain activities. Taking to X, one analyst pointed to developments within the Bitcoin spent volume lifespan chart. There, the analyst noted a 10X increase in BTC movements in comparison with previous highs.
The huge influx, amounting to a staggering $9 billion, coincides with Mt. Gox’s planned user compensation in July, initially slated for October. The analyst says the priority with this deluge is that it could trigger a sell-off, further driving prices down.
The impact of Mt. Gox accelerated release of BTC to victims from October to July sparked a sell-off in late June. Though prices recovered over the weekend, there have to be a convincing close above $63,000, marking June 24. If buyers press on, with $60,000 acting as a foundation, any breach of $66,000 can be ideal and might pave the way in which for much more gains within the short to medium term.
Technically, even with gains, bears are still on top of things. Because it is, the coin is inside a bear breakout formation following on June 11 when prices slide, setting the motion for the dip below $66,000.
Analysts Remain Upbeat: Expect BTC To Shake Off Weakness
Though there are concerns in regards to the current recovery, some think the selling pressure related to Mt. Gox might be exaggerated. Responding to the analyst’s assessment, one user said Mt. Gox users were likely tech-savvy early adopters with a transparent understanding of what Bitcoin offers.
Due to this fact, even with the defunct exchange distributing coins, they won’t be incentivized to sell on the fly. Also, the anticipated selling pressure has likely been factored in, muting attempts to lower prices.
One other analyst, replying to the fears of accelerating BTC supply, said. Nonetheless, the Bitcoin spent volume lifespan chart paints an image of a possible deluge; the entity-adjusted version, which discards internal transactions, reveals a more muted picture.
Based on this assessment, the analyst is convinced that the influx of BTC supply from Mt. Gox creditors will likely be less dramatic than initially feared.
Feature image from Canva, chart from TradingView