Key Points
- Bitcoin’s price might decrease due to the Mt. Gox FUD and the U.S. elections.
- The next major support for Bitcoin could be between $60,000 and $63,000 based on Fibonacci retracement.
Bitcoin [BTC] has been on a downward trend for six consecutive days. This trend is a reflection of the cautious sentiment due to the U.S. elections. However, a new FUD event may cause more decrease in the coming days.
Mt. Gox Bitcoin Transfer
The Bitcoin wallet of Mt. Gox has reportedly transferred 32,371 BTC, valued at roughly $2.9 billion, to an unknown wallet. This has led many analysts to anticipate a bearish outcome when the Mt. Gox payout takes place. This expectation is due to the belief that the holders awaiting payment, who have been waiting for years and are deep in profit, might be incentivized to sell, potentially triggering another significant price drop for Bitcoin.
Exchange flows have significantly declined since the end of October, reaching a historically relevant level. This indicates a potential pivot, meaning the battle between BTC bulls and bears is about to intensify. However, the chances of a strong bullish recovery are lower, especially with the Mt. Gox FUD adding to the selling pressure previously fueled by U.S. election concerns.
Bitcoin Exchange Inflows and Outflows
Bitcoin exchange inflows recently slowed down to 8,424 BTC in the last 24 hours. In contrast, exchange outflows were notably higher at 12,021 BTC, suggesting that the wave of sell pressure cooled down, allowing for some buying at discounted prices.
At press time, BTC bounced back to $68,778 after bottoming out at $66,813 on the previous day. This bounce happened before the Mt. Gox news, hence the possibility that the news may erase the slight confidence coming back into the market.
Fibonacci retracement indicates that Bitcoin could find the next major support between $60,000 and $63,000. This is based on the uptrend from September lows to its latest local high in October.
While it is possible that Bitcoin could pull back towards the $60,000 range, the U.S. election outcome may shield the price from more downside. A favorable outcome may send BTC back above the $70,000 range, but that remains to be seen.
