Bitcoin is eyeing a resurgence as Wall Street opens on July 5, amidst the market processing the initiation of Mt. Gox’s compensation payouts.
**Chart Analysis: BTC/USD on a 1-hour scale** – Courtesy of TradingView
**Forecasting Bitcoin’s Market: A Bumpy Journey Ahead**
Recent data from Cointelegraph Markets Pro and TradingView has captured a 3.8% uptick in Bitcoin’s (BTC) value, recovering from a dip to $55,550 on Bitstamp. This downturn marked BTC/USD’s weakest performance since the end of February, amid a wave of sell-offs and a sentiment that verged on “extreme fear.”
Observers of the market, caught off guard by the severity of the recent slump, attributed it to the commencement of asset transfers linked to the Mt. Gox recovery process.
“Initiation of transfers has triggered another market downturn. We’re now at a juncture to assess the extent of sales and the market’s response,” noted Daan Crypto Trades in a statement.
As reported by Cointelegraph, the sum allocated for Mt. Gox creditors’ distribution exceeds $8 billion, encompassing both Bitcoin and Bitcoin Cash (BCH).
Daan Crypto Trades highlighted that the BTC/USDT pair has been adhering to a descending channel, a trend that even the traditionally cautious Il Capo of Crypto views as a positive indicator.
“Channel interactions typically signal a corrective phase (a consolidation prior to further movement),” he commented.
**Chart Insight: BTC/USDT dynamics** – Source: Daan Crypto Trades
Concurrently, even optimistic market participants acknowledge the hurdles Bitcoin hodlers face.
“The robustness of Bitcoin’s long-term market structure is currently under scrutiny,” conceded trader Jelle upon examining the three-day chart.
**Chart Examination: BTC/USD trajectory** – Source: Daan Crypto Trades
**Ichimoku Cloud’s Perspective on Bitcoin’s Monthly Closure**
The most recent weekly candle has intensified the pressure on the bullish market, as indicated by the Ichimoku Cloud metric.
**Related Reading: Bitcoin’s Crucial Price Thresholds to Watch as $52K Support is Tested**
At a valuation of $56,150, Bitcoin’s price descended beneath the Kijun Sen trendline on the weekly chart, with the weekly candle caught between it and the Tenkan Sen upper trendline.
**Weekly Chart Analysis: BTC/USD with Ichimoku Cloud Indicators** – Courtesy of TradingView
Titan of Crypto, a well-known trader, suggested that a monthly closure below the Kijun Sen would necessitate a reassessment of the prevailing bullish market framework.
“According to Ichimoku analysis, Bitcoin maintains its bullish stance unless a monthly candlestick closes beneath Kijun and the subsequent candle confirms this,” he elaborated in a recent post.
**Chart Analysis: BTC/USD with Ichimoku Cloud Indicators** – Source: Titan of Crypto
Please note, this article is not intended as investment advice or recommendations. Every investment and trading decision involves risk, and it is advised that readers conduct their own research prior to making a decision.