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Bitcoin price slides to critical level as Mt. Gox repayment plan is finalized

2021.11.17 Hunain Naseer

BTC dropped below the key 60,000 USDT level as Mt. Gox repayment plan becomes final and binding.

Crypto Market Daily image

The total cryptocurrency market capitalization is down 1.2% today as BTC fell sharply on Tuesday, dropping from nearly 64,400 USDT to as low as 58,400 USDT, as per the OKEx BTC/USDT price. ETH similarly fell from around 4,500 USDT to 4,100 USDT yesterday.

Since then, however, we’ve witnessed a recovery across the market, with BTC bouncing from below 59,000 USDT to trade around 60,500 USDT at the time of writing.  

Markets remain uncertain as BTC trades around the 60,000 USDT level. Source: COIN360

Mt. Gox repayment plan has been finalized

As revealed in a letter by Mt. Gox trustee Nobuaki Kobayashi, the repayment plan for the compensation of creditors has been approved by a Japanese court and is now binding and final. 

This means creditors of the infamous exchange that was closed in 2014 can now expect reimbursements in the near future. However, no specific dates have been revealed, and creditors are going to receive only a fraction of the coins they actually lost.

While the exchange lost around 850,000 coins, it is believed that the Mt. Gox trustee holds more than 141,000 BTC, which are worth roughly $8.5 billion at current prices. The trustee’s wallets are also expected to hold Bitcoin Cash, a fork of BTC that took place in 2017.

The market reacted negatively to the news as some participants feared that this latest development meant over 141,000 BTC will be sold on the market in the near future. These fears are unfounded as of yet, though, especially because no specifics about the actual payments have been announced.

Top altcoins gainers and losers: Good Morning!

  • GM/USDT +51.88%
  • GALA/USDT +40.74%
  • CRO/USDT +16.57%
  • GNX/USDT -12.49%
  • YOYO/USDT -19.91%
  • NANO/USDT -35.80%

GM token is up more than 50% today, followed by GALA and CRO, while NANO, YOYO and GNX were the top losers. Notably, the gainers significantly outpaced the losers, which is indicative of the general bullish sentiment that is still prevalent in the market.

GM has had a good day today with gains of over 50%. Source: OKEx

BTC technical analysis: Price at critical level

On the daily chart, BTC finally reclaimed a long-standing trendline to kick-start the latest run upward. However, after yesterday’s price action, BTC fell below that trendline.

Reclaiming this trendline will be key for any further upside in the near future. If BTC gets rejected here, we can expect more downside and a possible test of the next support zone between 56,000 USDT and 53,000 USDT.

On the bright side, BTC has, in the past, dropped below this trendline intermittently, only to recover rather quickly and get back above it. Bulls will be hoping the same scenario repeats itself this time.

OKEx’s BTC/USDT — 11/17. Source: OKEx, TradingView

ETH technical analysis: Looking for support 

ETH lost more than 7.6% yesterday and is now looking for support around the 4,000 USDT mark. However, if BTC fails to maintain its run to the upside, we are likely to see ETH dropping to the zone between 3,600 USDT and 3,300 USDT before it finds sufficient demand.

OKEx’s ETH/USDT — 11/17. Source: OKEx, TradingView

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Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.

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