The bitcoin price has rebounded to $9,200 after experiencing a 10 percent decline on April 26, from $9,700 to $8,800. The sharp decline in the price of bitcoin was said to be triggered by the sale of the Mt. Gox trustee funds.
More than 17,000 bitcoins were said to be dumped on the public cryptocurrency exchange market over the past 24 hours by the Mt. Gox trustee. At a price of $9,700, 17,000 bitcoins were worth $165 million and that large sum of funds were dumped on major cryptocurrency exchanges.
Previously, the Mt. Gox trustee triggered the bitcoin price to drop by large margins in several occasions. The organization was heavily criticized for their decision to utilize public cryptocurrency exchanges to sell their funds instead of disposing them in the over-the-counter (OTC) market.
Within the cryptocurrency market, over-the-counter (OTC) traders refer to trades between large-scale investors or miners that own large sums of bitcoin. Hundreds of millions of dollars worth of bitcoin could be traded in OTC markets on a single day and not affect the public cryptocurrency exchange market because the liquidity and structure of the two markets are completely different.
In spite of the criticism from the cryptocurrency community and the request from investors to utilize the OTC market to sell large batches of bitcoin rather than cryptocurrency exchanges, the Mt. Gox trustee has continued to rely on major exchanges to dispose their funds. Consequently, subsequent to each sale, the price of bitcoin has fallen by large margins.
Bitcoin has recovered relatively quickly from the sharp decline in price caused by the Mt. Gox trustee’s dump. Volumes have re-emerged on major exchanges and overall demand has risen. The Relative Strength Index (RSI) and Williams’ Percent Range (WPR) of bitcoin signal a neutral zone for bitcoin and have not demonstrated neither oversold or overbought conditions over the past three days.
Often, when bitcoin remains in a neutral zone and is not flooded with sell orders, it tends to perform strong in the short-term. As such, investors expect the bitcoin price to end April at $10,000, regardless of the recent drop in price triggered by the Mt. Gox sale.
Tokens Performing Well
For three straight weeks, tokens including ICON (ICX), Decentraland (MANA), WanChain (WAN), EOS, OmiseGo (OMG), Kyber Network (KNC) and others have performed strong against both bitcoin and the US dollar.
Although the majority of tokens recorded some losses amidst bitcoin’s fall from $9,700 to $8,800, most tokens have demonstrated an increase in value in the range of 5 to 10 percent over the past 24 hours.
Verge, which was dumped after its partnership with PornHub was officially announced, has started to make its way back to its previous levels. At its peak, XVG was valued at around 0.00001435. Earlier this week, XVG plunged to 0.00000639, by more than 50 percent. At the time of reporting, XVG remains at 0.000000808, after recording 10 percent gain today.
Last modified: March 4, 2021 5:06 PM