Crypto Outlook: Bitcoin’s descent

Since our last report, Bitcoin appears to have moved lower putting crypto holders to the test. In the big picture crypto bears seem to have maintained their status as the dominant party behind the coin’s price. In this report, we aim to shed light on the possible factors aiding to the recent developments in combination with a technical analysis of Bitcoin.

Crypto: Overview Report

MT Gox repayment plans.

The trustee for Mt Gox, the Japanese BTC exchange who filed for bankruptcy a decade ago, stated on Friday that it would begin making payments in bitcoin and bitcoin cash to some of its creditors. The market worries about a potential return of roughly $9 billion worth of Bitcoin into the market, sent the coin’s price tumbling, with the coin’s price dropping temporarily below the $55,000 mark during the day. The sudden increase in the supply of Bitcoin into the market, seems to have taken participants by surprise.

Overall, the sudden influx of Bitcoin’s into the market may have spooked market participants into selling pre-emptively, in fear of the coin’s price decreasing further should Mt Gox creditors begin selling their bitcoin’s. As such, should investors fears be maintained it could weigh on the coin’s price even further. However, the negative implications may only be temporary, as large institutions may see the coin’s rapid price decrease, as an opportunity.

Metaplanet stocks up on Bitcoin.

According to a recent article by Cointelegraph, Japanese firm Metaplanet announced earlier on today, that it had completed the purchase of 42,466 Bitcoin for roughly 400 million Japanese Yen, which is worth at around $2.5 million USD. The announcement may boost optimism that company’s are still interested and are still accumulating bitcoin, which in turn may improve the market sentiment, surrounding cryptocurrencies and in particular Bitcoin. As such, should more firms publicly announced that they are accumulating Bitcoin, it may provide support for the coin’s price. However, the possible support that Bitcoin’s price may find as a result of such press releases, may only prove to be a temporary boost to the coin’s price.

Lastly, we would also like to note this week’s upcoming ICOs:

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Crypto Technical Analysis

BTC/USD Daily Chart

• Support: 53100 (S1), 47100 (S2), 39300 (S3) 
• Resistance: 59400 (R1), 66700 (R2), 73200 (R3)  

BTC/USD appears to be moving in a downwards fashion. We opt for a bearish outlook for the coin and supporting our case is the downwards moving trendline which was incepted one the 6    June, in addition to the RSI indicator below our chart which currently registers a figure near 30 implying a bearish market sentiment. For our bearish outlook to continue, we would require a break below the 53100 (S1) support level, with the next possible target for the bears being the 47100 (S2) support level.

On the flip side, for a bullish outlook we would require a clear break above the 59400 (R1) resistance line with the next possible target for the bulls being the 66700 (R2) resistance ceiling. Lastly, for a sideways bias we would require the coin’s price to remain between the sideways moving channel defined by the 53100 (S1) support level and the 59400 (R1) resistance line.

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