Collapsed crypto exchange Mount Gox moved 10,306 BTC worth $730.78 million to a new wallet, likely its own. This is the first major BTC transfer in two months, according to the BBC Arkham facts.
Likewise, it is an important symbolic transfer by Mt Gox as the October deadline for completing repayments to creditors approaches.
At the same time, 116.3 BTC, worth $8.2 million, returned to the Mt Gox hot wallet as change. In the past, such transfers by Mount Gox preceded distributions to creditors.
However, for now, none of the assets have been deposited on exchanges or depository institutions. Even after the token move, Mount Gox’s main wallet still contains 34.5k BTC worth $2.39 billion.
Bitcoin is on a steep slope, but demand remains
Mount Gox’s latest token transfers come amid a strong market-wide downturn, though neutral in itself. Bitcoin even extended its bearish streak, breaking the $70,000 support and falling to a seven-week low of $69,277.
At the time of writing, Bitcoin [BTC] traded at $69,406, down 4.5% from the daily charts. However, in a major twist, this market downturn has created an ideal opportunity to accumulate at a discount.
Over the past three days, BTC demand has recovered significantly during this decline. As such, $4.45 billion worth of BTC has flowed out of the exchanges.
In the shorter term, $2.84 billion left the exchanges, indicating strong buying activity in the market. Such increased outflows suggest that investors now view BTC as cheap enough to reenter the market.
Historically, Bitcoin has tended to rebound on the price charts once buyers aggressively purchase the dip.
Can dip buyers lift BTC?
Although dip buyers have returned to the market in force, Bitcoin’s structure remains extremely weakened. In fact, the Bitcoin Momentum Index Bias indicated that short-term market momentum was turning bearish.
As a result, momentum continues to decline and sellers currently have the upper hand in the market. Thus, demand over the past three days has yet to fully absorb overall market pressure, leaving it somewhat inadequate.
Furthermore, Bitcoin fell below the MACD SMAs, currently stuck between $74,000 and $77,000, further confirming the trend strength.
These indicators suggest that although buyers have tried, their demand is insufficient to trigger a trend reversal. Therefore, the market could see further losses, with $65,000 as the next support level.
However, if buyers hold on and increase existing bullish pressure, Bitcoin could reclaim $70,000 and target $74,000.
Final summary
- Mount Gox has been moved 10,306 BTC worth $730.78 million in a new wallet after 2 months as the October deadline approaches.
- Bitcoin [BTC] the market structure remains extremely weakened despite increased dip buying.