Bitcoin eyes Mt. Gox recovery amid warning over BTC price dip to $58K
2024.07.16 10:33
Bitcoin (BTC) sought to retest range highs at the July 16 Wall Street open as the market brushed off Mt. Gox BTC movements.
BTC/USD 1-hour chart. Source: TradingView
Bitcoin clings to “classic disbelief rally”
Data from Cointelegraph Markets Pro and TradingView showed BTC price strength returning for a fresh trip to $64,000.
Still down overall around 1% since the daily open, BTC/USD nonetheless showed resilience in the face of billions of dollars’ worth of coins leaving the cold wallet linked to defunct exchange Mt. Gox.
While some ignored the initial knee-jerk market reaction to the transactions, some popular traders called for caution.
Despite Bitcoin gaining in excess of 10% since the start of the weekend, they warned, those gains were still far from guaranteed to endure.
“I can see an argument for both scenarios atm- that the LTF impulse off 58k may be our bottom OR that this was just a deviation/fakeout to gather some momentum to take out our lows,” Credible Crypto wrote in part of a post on X (formerly Twitter).
BTC/USD, ETH/USD charts. Source: Credible Crypto/X
Daan Crypto Trades meanwhile warned that BTC/USD returning below $60,000 “wouldn’t be great.”
“So far, we’ve seen a solid disbelief rally where yes, there’s some euphoria by those that are allocated but also a lot of short squeezes and confused reactions by those who didn’t expect a move this quick,” he told X followers.
“In my opinion, a retest back to 59-60K wouldn’t be great and would show weakness. Technically it’s a good level and the chart would be okay if it holds. But in practice, these kind of ‘perfect retests’ rarely come and are often just a sign of weakness.”
BTC/USD chart. Source: Daan Crypto Trades/X
Analyst stresses importance of Bitcoin range reclaim
Zooming out, however, popular trader and analyst Rekt Capital argued that the significant change in trend had already occurred.
Related: Buying the dip? Bitcoin institutional investors add 100K BTC in a week
“The Re-Accumulation Range has successfully been reclaimed,” he explained, referring to Bitcoin’s trading range in the weeks following April’s block subsidy halving.
“The importance of this reclaim cannot be understated.”
BTC/USD comparison. Source: Rekt Capital/X
Michaël van de Poppe, founder and CEO of trading firm MNTrading, called for a retest of all-time highs within the next two and a half months.
“$BTC is back in the range. It had a deviation beneath the range low. However, in the past few days, it rallied back into the range,” he summarized on X alongside an explanatory chart, adding:
“As long as $60K holds, I’m expecting to see a continuation towards the all-time high in Q3.”
BTC/USDT chart. Source: Michaël van de Poppe/X
Earlier, Cointelegraph reported on an even bolder BTC price prediction from hedge fund trader Josh Man, who bet on new all-time highs coming before the end of July.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
