Now defunct crypto exchange Mt. Gox has recently executed a big transaction by moving a massive 11,501.4 BTC, valued at approximately $1 billion, across two wallets. This is the second big transaction of this scale done by the exchange this month of March. Investors are closely watching the possibility of any major BTC price volatility going ahead.
Mt. Gox Moves $1 Billion Worth of Bitcoin
As part of the creditor repayment procedure, Mt. Gox, a defunct crypto exchange, is moving its Bitcoin holdings in huge numbers. Earlier on Tuesday, the exchange moved a total of 11,501.4 BTC, worth $1 billion, across two wallets.
Details of the transaction reveal that 10,608 BTC (worth $929.7 million) was sent to a new wallet, while 893.4 BTC (valued at $78.3 million) was moved to a warm wallet, as reported by Spot On Chain.
This movement follows a previous Mt. Gox transfer, which saw 332 BTC ($25.5 million) deposited into the cryptocurrency exchange Bitstamp. Market watchers speculate that the 893.4 BTC sent to the warm wallet may also be moved out shortly, potentially impacting market dynamics.
Earlier this month in March, Mt. Gox moved 12,000 Bitcoin when the BTC price was trading around $92,000. Since then, Bitcoin has corrected nearly 7% and is currently flirting around $86,500 levels. The Bitcoin daily trading volumes have surged by a massive 97%, currently at $33.37 billion.
BTC Price Volatility Coming Soon?
Amid this massive Bitcoin movement by the crypto exchange, there’s a growing speculation of a major BTC price volatility coming ahead. Crypto analyst Ali Martinez has highlighted a critical resistance level for Bitcoin (BTC) at $89,000. This level marks the convergence of the 50-day moving average and a descending trendline stemming from Bitcoin’s all-time high.
Martinez analysis shows that it is important for Bitcoin to break through this cluster in order to stage a significant bullish momentum ahead. The current Bitcoin price prediction shows that bulls might try to restest this breakout again. However, failure to surpass it may result in continued consolidation or a potential pullback for BTC.
Furthermore, the analyst pointed out that the Bitcoin Relative Strength Index (RSI) has recently entered the overbought territory. The last six times the RSI has entered this territory, BTC has entered sharp corrections thereafter.
The TD Sequential indicator, known for its accuracy in identifying market reversals, suggests that Bitcoin (BTC) may be nearing a short-term peak. this shows that there could be some profit-taking moving ahead.
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