Bitcoin’s price could experience a correction lasting up to four weeks, as indicated by Bitcoin analyst Willy Woo. In a post on June 22, Woo mentioned that Bitcoin’s price action would become uneventful before a subsequent price pump. This potential correction aligns with the predictions made by crypto analyst Rekt Capital, who anticipates further downward pressure based on last week’s closing price.
The correction could be exacerbated by the repayment efforts of Mt. Gox, the collapsed cryptocurrency exchange. On June 24, Mt. Gox announced its plan to start repaying its users in July, with over $9.4 billion worth of Bitcoin owed to its creditors. This repayment process could introduce significant selling pressure on Bitcoin. Additionally, a wallet labeled by the German government moved nearly 6,500 BTC on June 19, adding to the upcoming selling pressure.
However, some analysts, like pseudonymous trader Jelle, view this as a temporary price shakeout rather than a more profound correction. Jelle pointed to the relative strength index (RSI) as a potential indicator that Bitcoin may not experience a significant downturn.
It’s important to note that this article does not provide investment advice or recommendations. Readers are advised to conduct their own research before making any investment or trading decisions.