Bitcoin grinds higher despite Mt Gox $9 billion BTC payout overhang

Bitcoin grinds higher despite Mt Gox $9 billion BTC payout overhang

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Ten years after the now legendary collapse of Mt Gox, the biggest bitcoin exchange in the world at that time, creditors have at last been given updates on their claims, and payouts could begin as early as May. Bitcoin is still grinding upward, regardless of this news. 

Further potential heavy selling in the pipeline?

The upward impetus of the $BTC price is about to come in contact with another rather large speed bump. Just as $BTC has started to recover from the massive selling out of the Grayscale Spot Bitcoin ETF (GBTC), the next potential heavy selling is already in the pipeline.

Creditors to the Mt Gox exchange have been informed on updates to their payouts, and the word is that some of these payouts could be made as early as next month.

A $9 billion value in $BTC hitting the market would obviously be quite a suppressant to the price, should it all arrive on the market in a matter of weeks. That said, it’s not sure that all that bitcoin would be given out straight away, and even then, with bitcoin in a bull market, a significant percentage of this amount would possibly continue to be held.

To put the $9 billion worth of $BTC into perspective, the Grayscale ETF has offloaded half of its $BTC stash since its launch. This amounts to around $20 billion in $BTC sold into the market over the last 6 months. So yes, this could act to suppress price, but this depends on just how much $BTC might be sold.

$BTC looking to break next resistance

Source: Coingecko/TradingView

As things stand, $BTC is continuing its recovery from the correction down to $59,600. An upward trend line has been respected over the last five days, and the price has been butting up against the $66,500 resistance since Monday. Given that $BTC looks to be forming an ascending triangle in this very short time frame, the likelihood is that price will continue the trend and break upwards.

Bull flag break could spark next parabolic phase for $BTC

Source: Coingecko/TradingView

On the higher daily time frame, things also look good for the $BTC price. Remaining inside the large bull flag, $BTC has good support underneath, and looks as though it may well get to the top of the flag over the course of the next several days. Assuming the price gets through the $67,000 level, more resistance will come in from $69,000 and higher. 

If a breakout of the bull flag occurs, followed by a new all-time high, the ensuing momentum, potentially for the subsequent weeks or even months as bitcoin goes into its final parabolic bull market phase, could be enough to make sure that any Mt Gox BTC sold into the market just becomes liquidity for further buying.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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