4-week correction for Bitcoin? Mt. Gox, Germany gov't add sell-pressure

Bitcoin could be headed into a month-long correction, as newfound selling pressure from Mt. Gox and the German government threaten to tank Bitcoin price below the $60,000 psychological mark.

Bitcoin could see up to a 4-week correction: analyst

Before resuming its price rally, Bitcoin ( BTC ) could see a correction of up to four weeks, according to popular Bitcoin analyst Willy Woo.

The analyst wrote in a June 22 X post to his over 1.1 million followers:

“Eyeballing this model... probably 1-4 weeks more of cooling down before #Bitcoin price action is sufficiently boring. Chart: Intensity of speculators playing casino games.”

“In other words, BTC price action will get as boring AF, the trading casino will go away, then the price will pump,” added the analyst.

The potential month-long correction is in line with the predictions made by popular crypto analyst Rekt Capital, who expects further downside pressure for Bitcoin price, based on last week’s closing price.

The analyst wrote in a June 17 report:

“A Weekly Close below the blue level has preceded rejections from here, where the blue level would transition into a new point of rejection. Bitcoin is potentially setting itself up for the same fate.”

Related: Why did Fetch and SingularityNET AI-tokens just surge 30%?

BTC price to test $60K amid Mt. Gox repayments

On June 24, collapsed cryptocurrency exchange Mt. Gox announced that would start repaying its defunct users in July.

More than $9.4 billion worth of Bitcoin is owed to approximately 127,000 creditors of Mt. Gox, who have been waiting for over 10 years to recover their funds, which could introduce significant selling pressure for Bitcoin.

This could introduce significant sell pressure according to Eric Balchunas, a senior ETF analyst at Bloomberg. He wrote in a June 24 X post:

“That’s like over half of all the ETF inflows being negated in one shot. Damn.”

Adding to upcoming selling pressure, a German-government labeled wallet moved nearly 6,500 BTC on June 19, according to Arkham Intelligence.

The wallet held nearly 50,000 BTC since February 2024, which is worth over $3 billion at today's prices.

However, others, like pseudonymous crypto trader Jelle, are only expecting this to be a temporary price shakeout, not a deeper correction. The analyst wrote in a June 24 X post :

“Bitcoin’s daily RSI has not been this low in nearly a year. In fact, the last time we saw oversold conditions was when BTC traded at $26,000. Summer shakeout?”

The relative strength index (RSI) is a popular momentum indicator used to measure whether an asset is oversold or overbought based on the magnitude of recent price changes.

Related: Over $122M Bitcoin longs liquidated as BTC falls below $61K

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.