Bitcoin Cash Price Slides 5% on Escalating Mt. Gox Creditors Kraken Withdrawals

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As a seasoned financial analyst with extensive experience in the cryptocurrency market, I have closely monitored the recent developments surrounding Bitcoin Cash (BCH) and its price movements. The news of Mt. Gox creditors withdrawing their BCH and Bitcoin (BTC) from Kraken following the successful distribution of assets has undoubtedly contributed to the current 5% dip in BCH value.

The value of Bitcoin Cash decreased by 5%, dropping to $368, after the commencement of Mt. Gox’s asset distribution program. Kraken, one of the trustees, received a substantial amount of 48,641 BTC from the now-defunct exchange and subsequently initiated the process of returning these assets to affected users. The confirmation of this successful redistribution by Kraken CEO David Ripley led to a wave of withdrawals by creditors, both of Bitcoin Cash and Bitcoin. Additionally, Mt. Gox has moved more Bitcoin to Bitstamp, potentially leading to further market fluctuations.

Bitcoin Cash Price Eyes 41% Gain Upon Completion of Key Structure

Bitcoin Cash Price Slides 5% on Escalating Mt. Gox Creditors Kraken Withdrawals

The price of BCH followed a descending trend from its high in mid-April, but more recent developments indicate the emergence of a possible reversal pattern. It seems that the price is forming the right shoulder of an inverse head-and-shoulders chart pattern, which could signal an impending bullish turnaround.

Reaching a new high above the $395 mark could potentially trigger a significant upward move, bringing the price close to the next significant barrier at approximately $529 – representing a roughly 41% increase from the present value.

As Bitcoin Cash’s price ascends, it might encounter resistance near $395 (the neckline), a significant level that aligns with both the 50-day moving average and the 200-day moving average. Conversely, if selling pressure takes over, Bitcoin Cash’s price could find support at approximately $360 and $300 – levels where it has bounced back on previous occasions.

As a researcher studying the cryptocurrency market, I’ve noticed that the Relative Strength Index (RSI) for Bitcoin Cash (BCH) has dropped to a reading of 46.44 and has now fallen below its 14-day Simple Moving Average (SMA). This signals that the bullish momentum in BCH price action might be weakening. Moreover, based on data from CoinGecko, trading volume for BCH has decreased by 19% within the last 24 hours. This reduction in buying interest among investors could be an indicator of waning enthusiasm for BCH in the market.

Despite this, there was a significant uptick in activity on the right shoulder’s formation, suggesting the buildup of tension and a possible imminent surge.

In simpler terms, based on the technical analysis, the price of BCH could potentially increase significantly if there’s a noticeable surge in buying interest for the cryptocurrency.

Mt. Gox Creditors Cashing Out BCH and BTC, Good Sign?

As a financial analyst reviewing the recent developments at Mt. Gox, I can share that the defunct cryptocurrency exchange has initiated a repayment program for victims of a hack that transpired several years ago. In order to fulfill its obligations to creditors, Mt. Gox will leverage five distinct digital asset exchanges, including Kraken and Bitstamp, as part of this process.

According to Kraken users’ accounts on Reddit, the Bitcoin repayment process is progressing positively, with many successfully withdrawing their Bitcoin.

Mt. Gox creditors initiate withdrawing their owed bitcoin and Bitcoin Cash through Kraken. #Bitcoin #News #BitcoinUpdate #BitcoinCreditors #Kraken #btc #bitcoincash

— Crypto Breaking News: Latest Crypto & Bitcoin News (@CryptoBreakNews) July 23, 2024

It’s a positive development for the crypto market as Mt. Gox and Kraken are taking responsibility for this situation.

Arkham said Bitstamp received 5110 BTC ($340.1 million) to 4 separate wallet addresses. 

UPDATE: MT. GOX MOVING $2.85B BTC
As a crypto investor, I’d rephrase it like this: This morning, Mt. Gox transferred a substantial amount of $2.85B worth of Bitcoin to new wallets. Among these transactions, they distributed approximately 5110 BTC ($340.1M) to four different Bitstamp wallets.
Bitstamp is among the five platforms collaborating with the Mt. Gox Trustee in processing the refunds for Mt. Gox users.
— Arkham (@ArkhamIntel) July 23, 2024

Bottom Line

The past five percent drop in Bitcoin Cash’s value occurred concurrently with heightened withdrawal activity from Mt. Gox creditors on Kraken. However, the optimistic outlook for Bitcoin Cash indicates potential growth towards $529, a 41% increase, due to its bullish market structure.

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2024-07-24 09:53