Whales reposition their BTC buy bids higher as price action appears to bore those seeking a continuation of the Bitcoin bull market.
Bitcoin (BTC) showed no sign of tackling $60,000 resistance on Nov. 23 as the specter of defunct exchange Mt. Gox returned to haunt price action.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Mt. Gox makes waves with payouts yet to come
The return towards $55,000 came as the latest events in the Mt. Gox rehabilitation process, originally published Nov. 16, began to hit the media.
In an announcement, trustee Nobuaki Kobayashi confirmed that the plans had now become “final and binding,” with the implication that the 141,000 BTC under custody would soon be distributed.
“The Rehabilitation Trustee will then make repayments to rehabilitation creditors holding allowed rehabilitation claims in accordance with the Rehabilitation Plan,” it states.
“An announcement will be made to rehabilitation creditors on the details of the specific timing, procedures, and amount of such repayments.”
While the details of the Mt. Gox conclusion have long been known, already shaky markets appeared to double down on their stance Tuesday, sentiment taking a further beating.
According to the Crypto Fear & Greed Index, what was “neutral” sentiment just a day ago is now firmly back in “fear” territory, the gauge measuring 33/100 at the time of writing.
Crypto Fear & Greed Index. Source: Alternative.me
Business as usual for monthly moves
Zooming out, meanwhile, popular trader and analyst Rekt Capital noted that on monthly timeframes, Bitcoin was behaving entirely reasonably.
After October’s highest ever monthly close, a retest of a previous 2021 monthly support level is now continuing.
#BTC is still retesting this Monthly level as support
Monthly retest is still intact, despite the downside volatility
That said, it is worth repeating that BTC could still easily see-saw like this for the remainder of the month
— Rekt Capital (@rektcapital) November 22, 2021
In common with previous downside periods, meanwhile, large-volume investors on exchanges appeared to be betting on and even trying to hasten new gains.
As noted by Charles Edwards, CEO of asset manager Capriole, buyer support levels are creeping higher as Bitcoin fails to drop to targets.
“Bitfinex whales once again walking up their bids,” he revealed alongside a chart from the platform showing $54,000 as a new focus instead of $50,000.
BTC/USD annotated chart with support and resistance strength. Source: Charles Edward