Bitcoin recovers after Mt. Gox-related panic selling on Monday — What’s next? 
Cryptocurrency Nov 5, 2024 Share
Bitcoin (BTC) shows strength and remarkable recovery after a panic selling on Monday that dropped the price by $2,000. The brief panic surged following Mt. Gox’s onchain activity, moving $2.2 billion worth of Bitcoin – raising sell-off alerts.
On November 4, Mt. Gox moved $2.2 billion worth of 32,371 BTC to the unlabeled wallet address 1FG2CvCnJAsb48Y1r3R43WwHwFJhXRveoy. Previously, a similar movement preceded repayments to the defunct exchange creditors on Kraken, negatively impacting Bitcoin’s price, as Finbold reported.
Interestingly, the receiving wallet uses a legacy Bitcoin address format called P2PKH, which is no longer used by the industry.
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1FG2CvCnJAsb48Y1r3R43WwHwFJhXRveoy Bitcoin wallet address. Source: Arkham Intelligence
Investors have been closely monitoring the address as the market awaits for the conclusion of Mt. Gox repayments’ drama. However, the trustee announced another change in the deadline for this over-a-decade fear, uncertainty, and doubt (FUD) that looms Bitcoin.
According to a press release, the repayment deadline has moved from October 31, 2024, to October 31, 2025.
”As it is desirable to make the Repayments to such rehabilitation creditors to the extent reasonably practicable, the Rehabilitation Trustee, with the permission of the court, has changed the deadline for the Repayments from October 31, 2024 (Japan Standard Time) to October 31, 2025 (Japan Standard Time).”
– Mt. Gox
Bitcoin price analysis during and after Mt. Gox-related panic selling
Notably, Bitcoin dropped from $68,785 to $66,813 as the Mt. Gox wallet moved over 32,000 BTC. Nevertheless, the leading cryptocurrency recovered from the panic selling, back to the levels it was at before Mt. Gox’s movement.
Overall, Bitcoin has strongly held above the high and low time frame downtrends (HTF and LTF) since October 15. The current price level resembles an accumulation pattern after a corrective wave, retesting the LTF previous resistance as support.
Bitcoin (BTC) 4-hour price chart. Source: TradingView / Finbold / Vinicius Barbosa
While traders and investors await to see what will happen next, this is expected to be a volatile week.
Today, November 5, US citizens will vote between Donald Trump and Kamala Harris as the next United States president. Analysts believe Trump will be better for the markets, including BTC, so the traders will try to price the result.
Tomorrow, November 6, the Federal Reserve will decide on the next interest rate target, likely influencing global macroeconomics. This is because the state of US Treasury bonds has raised concerns among experts, deeming it “absolutely terrifying” right now.
In the meantime, Bitcoin traders have shown different biases backed by both bearish and bullish short-term analyses. Alan Santana, for example, believes we are seeing a bull trap preceding a massive crash. Peter Brandt warned the recently claimed “breakout” is not a real breakout, as it misses some items from technical theory.
Conversely, Bitcoin could still achieve between 7% to 42% gains in November, according to historical results, as Finbold analyzed. Other analysts eye for prices above the $100,000 level for 2025.
In summary, while Bitcoin’s recent price action was bearish due to a panic selling event related to Mt. Gox movements, the leading cryptocurrency remains strong above a seven-month downtrend line, retesting it as support as the US presidential elections and interest rate decisions could shake the market and bring volatility. Analysts diverge in their forecasts for the short-term, although agreeing with a long-term bullish stance.
