Bitcoin's BTC/USD plunge on Friday comes on the heels of Mt. Gox starting its payment distribution. However, a trader predicted a further drop to a key demand level.
What Happened: Crypto chart analyst Ali Martinez in his latest tweet noted that currently Bitcoin is lacking significant support, and the key demand wall is at around $47,000.
Glassnode in its latest post highlighted the importance of the Mayer Multiple metric in evaluating Bitcoin’s market momentum. The metric's role is used in assessing the ratio between Bitcoin’s price and its 200-day moving average (200DMA).
The onchain data provider pointed out that the 200DMA is often used as a simple indicator for determining bullish or bearish momentum, with breaks above or below it serving as a key market pivot point. The firm noted that the 200DMA currently stands at a value of $58,000, aligning with on-chain price models.
The Mayer Multiple metrics compares the current price of Bitcoin to its 200DMA to determine if it is overbought or oversold. A high Mayer Multiple can indicate that Bitcoin is overbought and may be due for a correction, while a low multiple suggests it may be undervalued.
Another crypto trader Decode suggests remaining optimistic but cautious. He stated, "Buyers need to step in and close the week up. Until then, not ruling out that Bitcoin can still find the lower side of the main channel."
Also Read: Crypto Researcher Asks, ‘Was June A Bear Trap?’ — Warns, ‘We Aren’t Out Of The Woods Yet’
Why It Matters: Daan Crypto Trades noted that the first transfers were started by Mt. Gox sending coins to BitBank. While he noted that markets sold off after the transfers, it will now be important to see how much is getting sold and how the market absorbs it.
He concluded, "Rocky road ahead but after this massive supply overhang is cleared that’s great for the space in the long run."
Whale Alert data pointed out that this is the second-largest liquidation event in Bitcoin history after the FTX collapse in November 2022.
IntoTheBlock data noted that Bitcoin’s large transaction volume expanded by 4.8% to $50 billion while exchanges’ netflows spiked 259.7%. Meanwhile, transactions greater than $100,000 surged from 8,058 transactions as of July 3 to 8,748 as July 4.
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