- Bitcoin fell below $58,000 on Thursday, hitting its lowest level since May.
- Alex Kuptzikevich of FXPro said Bitcoin’s drop has pushed it below its 200-day moving average, which could be a sign of a downturn.
- Investors are selling off tokens amid growing concerns about selling pressure from Mt. Gox.
Bitcoin, the world’s largest cryptocurrency, hit a two-month low on Thursday, climbing above $58,000 for the first time since May.
Apex Token fell 3.5% in a day, dropping to as low as $56,882, snapping a three-day slide amid growing concerns about looming selling pressure in the market.
Alex Kuptsikevich, senior market analyst at FXPro, noted that Bitcoin’s price drop has seen it drop below its 200-day moving average.
This indicator is used to determine where the market is headed, as sustained trading below this indicator typically suggests a downturn.
“Given current conditions, a 12% drop to $51,500 (February’s consolidation area) is more likely than an equivalent increase to $65,800,” he wrote on Thursday morning. This higher prediction is based on Bitcoin’s 50-day moving average.
Just three days into the month, bitcoin is already down 8.6%, driven by concerns over payments from Mt. Gox, the cryptocurrency exchange that declared bankruptcy nearly a decade ago.
The planned payments, which will compensate customers affected by the 2014 hack, will be made in Bitcoin or Bitcoin Cash, but there are growing concerns about selling pressure as customers may choose to liquidate their tokens in search of big gains.
This concern has been weighing on Bitcoin’s price in recent days, according to research from K33.
Other crypto tokens, including Ether and Solana, have also followed Bitcoin in the decline. In fact, the industry’s market capitalization fell below its February low of $2.17 trillion on Thursday, Kuptzikevich wrote.
However, bullish analysts remain confident of Bitcoin’s comeback this year.
Fundstrat’s Tom Lee predicted on Monday that the cryptocurrency will surge to $150,000 by the end of the year once the Mt Gox crisis has passed.
Some, such as Galaxy CEO Michael Novogratz, have warned for months that Bitcoin would experience a correction before it could rise further, suggesting a floor of $50,000 in a February speech.
Still, Bitcoin has risen more than 38% year-to-date, rising to a record high of $73,798 during a massive bull run that was sparked by the launch of a Bitcoin spot ETF in January.
