Bitcoin Cash Price Slides 5% on Escalating Mt. Gox Creditors Kraken Withdrawals

The Bitcoin Cash price experienced increased selling pressure following withdrawals after the successful distribution of BCH and BTC from Mt. Gox on Kraken.
By Evans Karanja
BCH Price Prediction: Bitcoin Cash Eyes 28% Explosive Move

Highlights

  • Bitstamp received 5110 BTC ($340.1 million) to 4 separate wallet addresses from Mt. Gox.
  • Reports from Kraken users on Reddit indicate the repayment is going well.
  • A bullish reversal structure on the Bitcoin Cash price chart promises a 41% rally to $529.

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, BCH price is down 5% in the last 24 hours to $368.

Advertisement
Advertisement

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

Bitcoin Cash Price
Bitcoin Cash Price Chart

BCH 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.

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.

The relative strength index (RSI) is at 46.44 and just crossed below its 14-day simple moving average (SMA), indicating bullish momentum on BCH price action may be reducing. According to CoinGecko, 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.

Overall, the technical indicators suggest the price of BCH may break to the upside only if there is a positive and significant change in the BCH buy pressure.

Advertisement
Advertisement

Mt. Gox Creditors Cashing Out BCH and BTC, Good Sign?

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 5110 BTC ($340.1 million) to 4 separate wallet addresses. 

Advertisement
Advertisement

Bottom Line

The recent 5% decline in the price of BCH 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.

Advertisement

Frequently Asked Questions (FAQs)

1. How much was tranfered from Mt. Gox to Kraken?

A total of 48,641 BTC was transferred from Mt. Gox to Kraken.

2. How much was tranfered from Mt. Gox to Bitstamp?

Mt. Gox recently transferred approximately 47,229 BTC, valued at around $2.71 billion, to a new wallet address as part of its creditor repayment process. This large transfer included 1,545 BTC sent to the Bitstamp exchange.

3. Is BCH a good investment?

Bitcoin Cash should be a good investment as techinical indicators suggest that it is bound for a price reversal that can send it up.
Evans Karanja
Evans Karanja is a crypto analyst and journalist with a deep focus on blockchain technology, cryptocurrency, and the video gaming industry. His extensive experience includes collaborating with various startups to deliver insightful and high-quality analyses that resonate with their target audiences. As an avid crypto trader and investor, Evans is passionate about the transformative potential of blockchain across diverse sectors. Outside of his professional pursuits, he enjoys playing video games and exploring scenic waterfalls.
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.