Amid the recent recovery from a significant price correction of over 25% that sent the price of Bitcoin to a 6-month low of $53,500, the market’s largest cryptocurrency has since recovered to trade in the $66,000 to $68,000 range despite the start of Mt. Gox creditor repayments.
Investors, driven by the prospects of continuity price appreciationadopted a HODL stance, opting to hold onto their assets rather than sell them following the alleged Bitcoin exchange hack in 2011.
BTC holders remain steadfast
Data from market intelligence platform Arkham reveals that Mt. Gox has initiated a significant movement of $2.47 billion worth of BTC to new wallets, facilitating the distribution of 5,106 BTC worth $335 million to four separate Bitstamp addresses on Wednesday.
At the same time, creditors began receiving Bitcoin and Bitcoin Cash (BCH) they were owed through the US-based cryptocurrency exchange Kraken, as before. reported by NewsBTC on Thursday.
Despite initial concerns of a sell-off similar to the events of June, where the German police wallet sold Over $3 Billion in BTC Impacting Bitcoin Market Performance, CryptoQuant Analysis Indicates Positive Change.
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A notable increase in Bitcoin withdrawals Kraken’s post-Mt. Gox refunds suggest that affected users choose to hold onto their coins by transferring them from exchanges to cold wallets.
On-chain data compiled by the company shows that in the last 24 hours alone, over 5,000 BTC worth $329 million was withdrawn from the exchangescontributing to the current price consolidation and price stability of Bitcoin in recent days.
Arkham data further illustrates Mt. Gox’s ongoing efforts to repay creditors, with over 50,000 BTC transferred from the exchange’s wallet out of a maximum of 142,000 BTC, while retaining 90,344 BTC valued at approximately $6 billion in BTC.
Echoing the sentiment of CryptoQuant’s findings, Alex Thorn of Galaxy Digital highlights that most lenders are long-term Bitcoin proponents with a deep understanding of the technology.
Thorn claims that his preference for recovering Bitcoin rather than opting for a dollar payment signifies a strong inclination to hold onto his assets rather than trigger a liquidation. Furthermore, Thorn points out that the substantial capital gains implications of selling Bitcoin could dissuade creditors from liquidating their holdings.
Bitcoin Price Analysis
At the time of writing, the largest cryptocurrency on the market was trading at the $66,400 mark, as it is a key support level for Bitcoin price on track to retest upper resistance walls, eyeing the all-time high of $73,700 reached on March 14.
Adding to the bullish sentiment surrounding BTC’s price performance over the past week, the price may find notable support levels that could prevent further declines in the event of a sell-off by some Mt. Gox creditors in the coming days at $65,000.
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Another important level for bulls to watch is the $63,500 area, where the 200-day price exponential moving average (EMA), which, as seen on the BTC/USDT daily chart below, previously accompanied the price on further gains and acted as strong support for BTC.
Ultimately, it remains to be seen what stance creditors of the bankrupt Mt. Gox exchange will take in the coming days and weeks as more repayments are expected to flood creditors’ wallets and what impact this could have on the price.
Featured image of DALL-E, chart from TradingView.com