Bitcoin [BTC] has witnessed a downward trend for six consecutive days. This decline mirrors the cautious atmosphere prevailing due to the U.S. elections, however, a new negative event might result in further decreases in the upcoming days.
Allegedly, the Mt. Gox Bitcoin wallet has moved 32,371 BTC to an unidentified wallet, valuing the transferred coins at around $2.9 billion.
Anticipations from numerous analysts forecast a bearish outcome once the Mt. Gox payout is executed.
The pessimistic predictions stem from the fact that the recipients awaiting payment have been in wait for several years and are currently in significant profits.
Consequently, they may be encouraged to sell off, potentially instigating another substantial decline in the price of Bitcoin.
Will the Mt. Gox FUD Aggravate the Bitcoin Bear Market?
The flows on exchanges have been diminishing since the conclusion of October and have plunged to a level of historical significance.
A transition might be forthcoming, indicating that the clash between BTC bulls and bears is escalating.
Nonetheless, the prospects of a robust bullish resurgence are dimmed, particularly with the Mt. Gox FUD augmenting the selling pressure that was earlier propelled by U.S. election uncertainties.
Recent Bitcoin exchange inflows dwindled to 8,424 BTC within the last 24 hours, as of the time of writing.
Conversely, the outflows from exchanges were notably more substantial at 12,021 BTC, signaling that the selling pressure waned, thereby allowing for purchases at reduced prices.
The prevalent higher exchange outflows than inflows are evident in the form of a recovery within the past 24 hours.
At present, BTC rebounded to $68,778 after reaching a low of $66,813 the day before. This rebound occurred before the news about Mt. Gox, thus raising concerns that this news might undermine the slight confidence reentering the market.
However, what can traders expect if the bears regain control?
According to Fibonacci retracement, the next significant support for Bitcoin could lie between $60,000 and $63,000, based on the upward trend from the lows in September to the recent peak in October.
Although there’s a possibility that Bitcoin could retrace towards the $60,000 level, the outcome of the U.S. elections may provide a shield against further declines in the price.
A favorable result could propel BTC back above the $70,000 range, yet this remains uncertain.