By
Steve Muchoki
April 23rd, 2024
The Bitcoin price has bounced up to $9,370 following recent a 10 percent decline marked on April 26 that reportedly was triggered by the sale of the Mt. Gox trustee funds while technical figures indicate the feasible potential for a move higher towards major resistance at $10,000.
Bitcoin seems to recover from the price roller coaster it has exhibited for the last few days. At the press time, the king of altcoins hit the $9K mark according to data from cryptocurrency tracker CoinMarketCap and some analysts predict even more upwards in the nearest future. However, the digital currency has had a slow start to today’s trading, which might be signaling that the rally is coming to a pause.
The reason for the experienced decline in Bitcoin price became a Mt. Gox trustee’s major sellout that was said to dump on the public cryptocurrency exchange more than 17,000 Bitcoins over the past 24 hours. At a price of $9,700, 17,000 bitcoins were worth $165 million and that large sum of funds lead to increased volatility at the largest cryptocurrency exchanges.
In spite of the criticism from the cryptocurrency community and the request from investors to utilize the Over-The-Counter market to sell large batches of Bitcoin rather than cryptocurrency exchanges, the Mt. Gox trustee has continued to rely on major exchanges to dispose their funds. Consequently, subsequent to each sale, the price of Bitcoin has fallen by large margins.
Nevertheless, by now Bitcoin has managed to regain the value as well as re-emerge its volume, thus the overall market demand is being balanced. As practice shows, when Bitcoin remains in a neutral zone and is not flooded with sell orders, it tends to perform strong in the short-term giving investors a stimulus to anticipate the Bitcoin price to end April at $10,000, regardless of the recent drop in price triggered by the Mt. Gox sale.
And indeed this assumption might has merit, since over in Chicago the cryptocurrency space was boosted by the highest daily volume for Bitcoin futures trading since their introduction at the CBOE five months ago. The recently obtained market statistics reveals that about 18,210 contacts for the May futures were traded, along with 703 for the June contract and 87 for the July contract and no volume was reported for the exchange’s August-dated contract.
Kevin Davitt, the CBOE Options Institute senior instructor, said that the average daily volume (ADV) runs about 6,600 in XBT Bitcoin Futures when reported the volume was nearly three times ADV that makes approximately a total of 19,000 Bitcoin futures traded across the term structure.
Bitcoin’s recent gains comes amid a larger rebound observed across the cryptocurrency market. The other top 10 digital coins are all posting significant gains for the most recent 24-hour period, with Stellar (XLM) and IOTA (MIOTA) being the standout performers, thanks to their double-digit percentage increases.
Stellar’s robust performance have allowed the coin to overtake Cardano (ADA) as the seventh-largest digital currency by market capitalization. The second most valuable cryptocurrency, Ethereum (ETH), has turned in impressive performance too, gaining 7% over the period.
As a result of the rebound, the cryptocurrency market’s total valuation reached the $415-billion mark reached that once again nourishes the expectation of Pantera Capital CEO, Dan Morehead, who the other day has predicted a possible $40 trillion worthiness of cryptocurrency market capitalization.