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Bitcoin, Ethereum, Dogecoin Bleed On Mt. Gox's Repayment Scare: Analyst Underpins $62.5K As Key Level For King Crypto For Things To 'Look Much Better'

Benzinga ·  Jun 24 21:59

It turned out to be a sell-the-news event for the cryptocurrency market on Monday as Mt. Gox's July repayment plan sent investors into panic.

CryptocurrencyGains +/-Price (Recorded 8:30 p.m. EDT)
Bitcoin (CRYPTO: BTC)-4.32%$60,350.99
Ethereum (CRYPTO: ETH)-2.16%$3,347.99
Dogecoin (CRYPTO: DOGE)-3.12%$0.119

What Happened: Bitcoin plunged below $60,000 to hit its lowest level since early May. The dump was precipitated by defunct cryptocurrency exchange Mt. Gox's repayment obligation to its creditors, threatening to flood the market with $9 billion in additional Bitcoins.

Ethereum extended its downturn as well. Since the beginning of the month, the second-largest cryptocurrency has shed 12% of its gains made from the approval of spot ETFs.

About $363 million in open positions was liquidated from the market in the last 24 hours, the highest since June 7. Nearly $300 million in long bets was wiped out.

The slump shook the derivatives market, as the Open Interest In Bitcoin futures tumbled 3.65%. Some experts interpret this scenario positively, as it cools off an overleveraged market and paves the way for an uptrend once longs close their positions.

The Cryptocurrency Fear & Greed Index flashed "Fear," as of this writing, indicating that downsides may continue.

Top Gainer (24-Hours)

CryptocurrencyGains +/-Price (Recorded at 8:30 p.m. EDT)
Fetch.ai (FET)+15.82%$1.63
dogwifhat (WIF)+14.53%$1.83
Lido DAO (LDO)+14.32%$2.37

The global cryptocurrency market cap stands at $2.23 trillion, following a decline of 2.91% in the last 24 hours.

Stocks were a mixed bag Monday. The Dow Jones Industrial Average surged . 260.88 points, or 0.67%, to end at 39,411.21. Conversely, the S&P 500 slipped 0.31% to close at 5,447.87, while the tech-focused Nasdaq 100 slumped 1.09% to finish at 17,496.82, its worst since April.

The decline was precipitated by AI giant NVIDIA Corp. (NASDAQ:NVDA) 6.68% slump, which spurred the overall market surge in recent weeks.

Investors were geared for May's personal expenditure data set to be released Friday. Note that the macroeconomic data is the Federal Reserve's preferred inflation gauge.

See More: Best Cryptocurrency Scanners

Analyst Notes: Popular cryptocurrency trader DonAlt noted Bitcoin's breakout from rangebound movement, but the sustainability of the breakout was yet to be ascertained.

"Generally, it makes sense to expect this to start trending to the downside until we're at least back in the range (>$62,500)," the trader stated. "Above there and it looks much better again."

$BTC
Shitposts aside
We broke the range to the downside, whether that is a genuine breakdown is to be decided
Generally, it makes sense to expect this to start trending to the downside until we're at least back in the range (>$62.5k)
Above there and it looks much better again pic.twitter.com/B2SvAnKksB

— DonAlt (@CryptoDonAlt) June 24, 2024

At the same time, widely followed analyst Ali Martinez highlighted the King Crypto's RSI going into the oversold zone. Previous such instances over the past two years preceded price recovery of 60% to 198%.

"It might be a prime opportunity to buy the dip," Martinez opined.

In the past two years, the #Bitcoin daily RSI has hit oversold territory three times, resulting in $BTC price surges of 60%, 63%, and 198%, respectively.
With #BTC now below $62,000 and the RSI in oversold territory again, it might be a prime opportunity to buy the dip! pic.twitter.com/JkJ4IgoeML

— Ali (@ali_charts) June 24, 2024

Image via Shutterstock

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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