News
Bitcoin Price Collapses on Mt. Gox Transfers While Ethereum and Solana Prices Rise
The price of Bitcoin is experiencing high levels of volatility on Tuesday. Since last weekend, BTC price has been trading sideways, facing resistance in breaking above the $70,000 barrier. After several failed breakout attempts, the price took a bearish turn on Wednesday and fell by 2.16%. Ethereum and Solana prices also collapsed initially, but quickly recovered to turn the daily candle green.
The BTC price correction could be attributed to the movement of massive amounts of Bitcoin by Mt. Gox, a cryptocurrency exchange that was hacked and eventually shut down in 2014. According to the latest reports, the bankrupt exchange has moved 107,000 Bitcoins in the last 24 hours, which is equivalent to $9 billion.
Technical analysis of the Bitcoin price
When the news of the Mt. Gox move broke, BTC/USD started to fall. This is because the struggling exchange is set to pay out these Bitcoins to users who held them on the platform before it went bankrupt. Therefore, many market participants expect a sell-off once Bitcoin is distributed.
On the daily time frame, Bitcoin broke the downtrend by forming a higher high. This suggests that the ongoing pullback could be a buying opportunity. There is also a strong possibility of a deeper correction to the $63,700 or $60,750 support zones where buyers are expected to intervene.
Ethereum Price Outlook
Despite the recent approval of the spot ETH ETF, Ethereum has yet to break above the $4,000 level. One reason could be the excess of possible outflows from Greyscale’s Ethereum ETF once it goes live. However, the Ethereum price prediction will remain bullish as long as the bulls hold the $3,500 level.
Solana (SOL) faces resistance at $172
Soana price increased by 0.46% on Tuesday. The smart contract asset is showing strength against Bitcoin as the latter hovers at new weekly lows. However, the $172 level currently acts as resistance and needs to be broken above to unlock a huge upside. If this breakout occurs, the next target for the SOL cryptocurrency could reach $193. In case of a pullback, you need to keep an eye on the $166 support level.
Disclaimer: Analytics Insight does not provide financial advice or guidance. Also keep in mind that the cryptocurrencies mentioned/listed on the site could potentially be scams, i.e. designed to trick you into investing financial resources that could be lost forever and no longer recoverable once the investments have been made. You are responsible for conducting your own research (DYOR) before making any investment. to know more Here.