Bitcoin Cash Price Crashes 5% Amid Rising Selling Pressures

Bitcoin Cash price has experienced increased selling pressure following withdrawals after the successful distribution of BCH and BTC from Mt. Gox on Kraken. Bitcoin Cash price dipped in value following the start of the Mt. Gox repayment program. Kraken, one of the Trustees, received 48,641 BTC from Mt. Gox and, shortly after, began disbursing the assets back to the victims. Kraken CEO David Ripley confirmed the successful distribution of the assets back to creditors from his exchange.

Following this distribution, creditors started withdrawing their BCH and BTC from Kraken. Furthermore, Mt. Gox has transferred more BTC to the Bitstamp exchange, which could further influence market prices. As a result, the Bitcoin Cash price is down 5% in the last 24 hours to $368.

Bitcoin Cash Price Eyes 41% Gain Upon Completion of Key Structure

Recent reports suggest that Bitcoin Cash price action trended downward from its peak in mid-April, but recent price action indicates a potential reversal pattern may be forming. The price appears to be completing the right shoulder of the inverse head-and-shoulders pattern, suggesting a potential bullish reversal.

Sources highlight that a break above the neckline ($395) may result in a further upside swing to the next major resistance around $529, a 41% surge from its current price. On its way up, Bitcoin Cash’s price may find resistance around $395 (the neckline), which also coincides with the 50-day and 200-day EMAs. On the flip side, if bears prevail, decent support exists around $360 and $300, where the price has bounced off multiple times.

Bitcoin Cash Price Action: Technical Indicators Suggest Cautious Optimism

The relative strength index (RSI) is reportedly at 46.44 and just crossed below its 14-day simple moving average (SMA), indicating bullish momentum on Bitcoin Cash price action may be reducing. According to news reports, BCH trading volume is down 19% in the last 24 hours, showing reduced buying interest among investors. Nevertheless, there was a notable increase in volume on the formation of the right shoulder, which signals accumulation and a potential upcoming breakout.

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Overall, the technical indicators reportedly suggest the BCH price may break to the upside only if there is a positive and significant change in the BCH buy pressure. As renowned trader and analyst, John Bollinger, once said, “The key to successful trading is to stay ahead of the crowd, and that means being willing to take a different view.”

Mt. Gox Creditors Cashing Out BCH and BTC: A Positive Sign?

Insider’s claim that Mt. Gox recently began its repayment program for victims of a hack that happened years ago. The company will use five exchanges, including Kraken and Bitstamp, to reimburse its creditors as it is no longer in operation. Reports from Kraken users on Reddit indicate the repayment is going well, as they have been able to withdraw their Bitcoin. This is a good sign for the general crypto market as it indicates accountability by Mt. Gox and Kraken.

Arkham said Bitstamp received 5,110 BTC ($340.1 million) from four separate wallet addresses. “The fact that Mt. Gox is successfully distributing funds back to creditors is a positive development for the cryptocurrency community,” said a blockchain expert. “It shows that despite the setbacks, the industry is moving towards greater accountability and trust.”

BCH Market Outlook: Balancing Risk and Opportunity

The recent 5% decline in the Bitcoin Cash price coincides with increased withdrawal activity from Mt. Gox creditors on the Kraken exchange. Nevertheless, the Bitcoin Cash price is aiming for higher targets, as a bullish market structure promises a 41% rally to $529.

Investors are advised to keep an eye on these developments, as the market remains volatile and full of potential opportunities. The evolving landscape of digital currencies requires careful consideration and strategic planning to navigate successfully. The recent dip below $400 exemplifies the market’s unpredictability, urging investors to stay informed and agile in their investment strategies. Keep following The BIT Journal for the latest crypto updates.