Bitcoin slips past $58,000 for the first time since May

by Jonathan Adams

The token slipped 3.5% through the day, at one point reaching $56,882

Bitcoin reached a two-month low on Thursday, as the world’s largest crypto currency slid past $58,000 for the first time since May.

The apex token slipped 3.5% through the day, at one point reaching $56,882. The fallout extends a three-day decline, as concerns mount over impending selling pressure in the market.

The decline has now dragged bitcoin below its 200-day moving average, said FXPro senior market analyst Alex Kuptsikevich.

This metric is used to determine where a market is headed — consistent trades below the gauge typically suggest a downturn.

From the current position, a 12% decline to $51.5k (February consolidation area) is more likely than the same amount of growth to $65.8k, he stated on Thursday morning. The higher forecast is based on bitcoin’s 50-day moving average.

Just three days into the month, bitcoin has already suffered an 8.6% decline. Driving the sell-off is looming concern over payouts from Mt. Gox, a crypto exchange that was declared bankrupt nearly a decade ago.

The planned payments are to reimburse clients who were victims of a 2014 hack, and will be doled out in bitcoin or bitcoin cash. But that is adding to worries over selling pressure, as clients may choose to cash their tokens for big gains.

As per K33 research, the concern has been weighing on bitcoin’s price in recent days.

Other crypto tokens like ether and solana, are following bitcoin down. In fact, the industry market capitalisation dropped to a February low on Thursday, declining below $2.17 trillion, Kuptsikevich stated.

Bullish analysts have remained confident about a bitcoin comeback in 2024, however.

On Monday, Fundstrat’s Tom Lee projected that the crypto will surge to $150,000 by the end of the year, once the Mt. Gox overhang passes.

Others, such as Galaxy CEO Michael Novogratz, cautioned months before that a bitcoin correction will happen before it can continue climbing higher. Speaking in February, he suggested a floor of $50,000.

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of Trading and Investment News. The information provided on Trading and Investment News is intended for informational purposes only. Trading and Investment News is not liable for any financial losses incurred. Conduct your own research by contacting financial experts before making any investment decisions.

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