Mt. Gox Delays $4B Repayments to 2025 — Could This Boost Bitcoin’s Price?

Key Takeaways

• Mt. Gox has extended the deadline for repaying creditors to Oct. 31, 2025.
• The Bitcoin price has declined since Sept. 27, and trades are below resistance.
• Can BTC begin an upward movement and reach the $64,000 resistance?

The Bitcoin (BTC) price began an upward movement on Sept. 6, reaching a high of $66,508 on Sept. 27. At the time, it seemed that BTC was in the process of breaking out from the corrective trendline that had existed since March.

However, Bitcoin has fallen since, briefly declining below $60,000 in October.

Can Bitcoin regain its footing and make another breakout attempt, or will the downward trend continue for the rest of the month? Let’s find out.

Mt. Gox Selling Pressure

In an announcement on Oct. 10 , Mt. Gox moved the deadline for $4 billion in Bitcoin repayments from Oct.31, 2024, to 2025. This will likely have positive ramifications since the repayment of 45,000 BTC could cause selling pressure.

However, there is another potential source of selling pressure. The U.S. Supreme Court has declined to take on an appeal regarding $4.4 billion worth of BTC seized from the Silk Road marketplace.

This paves the way for the U.S. government to sell them. According to data from Lookonchain , the government has not moved any Bitcoin in the past two months.

The IRS agent who seized the Bitcoin, Tigran Gambaryan, is currently languishing in prison in Nigeria. After his bail was postponed, Gambaryan is set to face his money-laundering trial on Oct. 11, despite pleas for his release by numerous actors.

Bitcoin Creates Lower High

The daily time frame Bitcoin analysis gives a mixed reading. While the price has created a higher low and a higher high since Aug. 5, the price failed to maintain an upward movement above $64,000.

Rather, the BTC price was rejected on Oct. 7, creating a long upper wick (black icon), a sign of selling pressure. Horizontal support at $58,000 coincides with a potential ascending support trend line.

Technical indicators give an undetermined outlook. The Relative Strength Index (RSI) is at 50, and the Moving Average Convergence/Divergence (MACD) is at 0. Both are considered signs of a neutral trend.

One More BTC Price Low

While the daily time frame readings are mixed, the shorter-term six-hour one is more bearish.

The six-hour chart shows a breakdown from an ascending support trend line that has existed since the Bitcoin upward movement started on Sept. 6. This signals that the portion of the upward movement is over.

Despite a bounce starting in October, the 0.618 Fibonacci retracement resistance level (black) rejected the Bitcoin price. Another short-term breakdown followed, a sign of a corrective movement.

So, the most likely wave count suggests that the decline since Sept. 27 is an A-B-C corrective structure, and BTC is in wave C.

Giving waves A:C a 1:1 ratio leads to a low of $57,875, validating the 0.618 Fibonacci retracement support level and coinciding with a retest of the $58,000 horizontal support area. Therefore, the area could mark the bottom, leading to a BTC upward movement toward the $64,000 resistance area and beyond.

Bitcoin Correction Not Over

Extending the Mt. Gox repayment deadline will likely ease Bitcoin’s selling pressure.

However, the selling by the U.S. government could offset this, and the bearish readings from the six-hour time frame suggest another low is likely before a reversal.

Read More: Bitcoin Price Prediction 2024: BTC Price Analysis