Bitcoin
remains
within
an
uptrend
from
a
top-down
preview,
looking
at
the
performance
in
the
daily
chart,
especially
in
Q1
2024.
Bulls
appear
to
be
taking
over,
with
the
coin
floating
above
$60,000.

There
Is
Oversupply
In
Bitcoin:
Will
Prices
Fall?

Not
everyone
is
convinced
that
the
uptrend
will
last,
at
least
based
on
on-chain
activities.
Taking
to
X,
one
analyst

 

pointed
to
developments
in
the
Bitcoin
spent
volume
lifespan
chart.
There,
the
analyst
noted
a
10X
increase
in
BTC
movements
compared
to
previous
highs.

The
massive
influx,
amounting
to
a
staggering
$9
billion,
coincides
with
Mt.
Gox’s
planned
user
compensation
in
July,
initially
slated
for
October.
The
analyst
says
the
concern
with
this
deluge
is
that
it
could
trigger
a
sell-off,
further
driving
prices
down.

The
impact
of
Mt.
Gox
accelerated
release
of
BTC
to
victims
from
October
to
July
sparked
a
sell-off
in
late
June.
Though
prices
recovered
over
the
weekend,
there
must
be
a
convincing
close
above
$63,000,
marking
June
24.
If
buyers
press
on,
with
$60,000
acting
as
a
foundation,
any
breach
of
$66,000
would
be
ideal
and
might
pave
the
way
for
even
more
gains
in
the
short
to
medium
term.

Technically,
even
with
gains,
bears
are
still
in
control.
As
it
is,
the
coin
is
within
a
bear
breakout
formation
following
on
June
11
when
prices
slide,
setting
the
motion
for
the
dip
below
$66,000.

 

Analysts
Remain
Upbeat:
Expect
BTC
To
Shake
Off
Weakness

Though
there
are
concerns
about
the
current
recovery,
some
think
the
selling
pressure
associated
with
Mt.
Gox
could
be
exaggerated.
Responding
to
the
analyst’s
assessment,
one
user
said
Mt.
Gox
users
were
likely
tech-savvy
early
adopters
with
a
clear
understanding
of
what
Bitcoin
offers.

Therefore,
even
with
the
defunct
exchange
distributing
coins,
they
won’t
be
incentivized
to
sell
on
the
fly.
Also,
the
anticipated
selling
pressure
has
likely
been
factored
in,
muting
attempts
to
lower
prices.  

Another
analyst,
replying
to
the
fears
of
increasing
BTC
supply,

said.
However,
the
Bitcoin
spent
volume
lifespan
chart
paints
a
picture
of
a
potential
deluge;
the
entity-adjusted
version,
which
discards
internal
transactions,
reveals
a
more
muted
picture.

Based
on
this
assessment,
the
analyst
is
convinced
that
the
influx
of
BTC
supply
from

Mt.
Gox
creditors
will
likely
be
less
dramatic
than
initially
feared.

Feature
image
from
Canva,
chart
from
TradingView

Go to Source
Author: Dalmas Ngetich

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