- Bitcoin price still hovers above $66k despite Mt. Gox repayments.
- Analysts say on-chain data shows most BTC holders receiving the repayments are choosing to hodl.
- BTC price may benefit from this, with a potential to rebound to recent highs.
Bitcoin traded to above $66,500 on Wednesday morning as the market looked to bounce following fresh downside pressure.
The dip to lows of $65,444 on crypto exchange Coinbase happened as traders reacted to news that the US government had sent BTC to exchanges.
Bitcoin holds above $66k
Movement from the Mt. Gox wallets amid repayments also spooked some to introduce selling pressure. The return of outflows for spot Bitcoin exchange-traded funds on Tuesday supported this outlook, with over $78 million in outflows breaking a 12-day streak.
So while prices have dipped since trading to highs of $68,495 earlier in the week, analysts are bullish on the flagship cryptocurrency’s recovery in the short term.
Price holding above $66k points to this and analysts at CryptoQuant says positive sentiment could increase given Mt. Gox BTC recipients are largely choosing to hodl rather than sell. Bitcoin outflows from Kraken have continued to rise and analysts see it as a likely positive signal.
“Significant increase in BTC withdrawals from Kraken after affected Mt.Gox users start receiving their $BTC. This could be a positive signal, indicating that they are not selling and are preparing to hold their coins, moving them from the exchange to cold wallets,” CryptoQuant posted on X.
Nonetheless, Bitcoin price is currently at a level that 1-3 month BTC holders may look to sell. CryptoQuant analyst Yonsei said a breakdown from the $66.5k area could see BTC seek support around $63.6k.