BTC Under Pressure

Bitcoin prices have come under fresh selling pressure today. Following a firm push higher yesterday, BTC futures have shed almost 5% from Monday’s peak. The driver behind the move is news that the failed crypto exchange Mt. Gox is beginning to offload the roughly $9 billion worth of Bitcoin held in its bankruptcy estate.

Mt. Gox Crypto Moves On Watch

According to data from industry analytics group’s CryptoQuant and Arkham Intelligence, all 137k units of Bitcoin were moved from the exchanges wallet to begin the process of returning them to creditors. The key question now is whether those receiving the digital asset will hold onto them or sell them. If we see high levels of selling, this will weigh on BTC driving prices lower near-term.

Bullish Outlook Remains

Despite the current focus on this situation, the price reaction from any reported selling is likely to be short-lived. The broader macro backdrop remains bullish for BTC with US regulators looking increasingly friendly towards the crypto market, institutional demand continuing to rise and the Fed expected to begin easing monetary policy this year.

US Inflation

Looking ahead this week, US PCE data on Friday will be closely watched. With USD currently under pressure, any fresh downside in price data should spur further selling in the Dollar, helping underpin risk appetite and lead BTC higher.

Technical Views

BTC

The rally in BTC has stalled for now into a test of the bear channel highs. Momentum studies are weakening here, suggesting growing risks of a pull-back lower. Key sup[ort levels to note are 66.625 and 64.540, with bulls needing to defend this area to keep the near-term focus on a breakout higher. 

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