This morning at 04:21 UTC, Mt. Gox performed several small Bitcoin transfer tests. These included a transfer of 0.0001 BTC to a Bitbank hot wallet and two additional transfers of 0.0001862 BTC and 0.0001 BTC to unmarked addresses.
These transactions come just as Mt. Gox is preparing to start distributing assets stolen from clients in a 2014 hack later this month.
The cryptocurrency market reacted with Bitcoin plunging under $58,000, a nearly 5% loss in 24 hours. This price drop pushed BTC to levels not seen since early May.
The timing of these test transactions adds an intriguing layer to the market’s current volatility. Wallets tracked by Arkham revealed that these test transactions totaled approximately $27 worth of BTC.
After numerous delays, the repayments will be made in Bitcoin and Bitcoin Cash (BCH). This move could potentially increase selling pressure on both markets.
As Cryptopolitan previously reported, entities holding large amounts of tokens often move small amounts between wallets before executing larger transfers.
How Bitcoin is doing right now
Bitcoin is currently trading at $57,410.00. The 50-period moving average is positioned below the 200-period moving average, creating a bearish crossover.
This means that the short-term trend is weaker compared to the long-term trend, a classic sign of continued bearish market.
The Ichimoku Cloud, a versatile indicator, shows that Bitcoin is trading well below the cloud. This positioning confirms a bearish trend.
Additionally, the leading span lines (Senkou Span A and Senkou Span B) are declining, providing further resistance above the current price level.
This suggests that any attempts to move upwards might face huge resistance, keeping the bearish sentiment intact. The double top pattern observed in the recent price action is a strong bearish signal.
The pattern shows us that Bitcoin has reached a peak twice in succession with a moderate decline between the two peaks. The RVI is currently at 50.85, slightly above the neutral 50 level. This could indicate a minor bullish correction in the very short term.
Given the combination of bearish indicators, including the bearish crossover of moving averages, the position below the Ichimoku Cloud, the double top pattern, and the overbought Stochastic RSI, Bitcoin is likely to continue its downward trajectory in the short term.
Reporting by Jai Hamid
