Why Bitcoin Price Failed to Hit $70k Amid Ethereum ETF Hype

Bitcoin price reached a 30-day of $68,330 on July 22 just 24-hours ahead of the much-anticipated Ethereum ETFs launch on Tuesday, markets analysis show Mt Gox payments may have impeded BTC from advancing above $70,000.

Bitcoin Price Peaks at $68k Amid Ethereum ETF Euphoria

After more than a month in-wait, Ethereum ETFs began trading officially on US regulated markets on Tuesday July 23, 2024. Bitcoin and the rest of the broader cryptocurrency sector have witnessed increased demand in the build up this landmark event.

As expected, Bitcoin price raced into a 25% rally, from $53,542 July 5 to a 30-day peak of $68,477 on July 22.

Bitcoin Price Action BTCUSD | TradingView

Bitcoins remarkable price action in the build up to July 23, sparked hopes that the hype around the Ethereum ETFs launch could lift BTC above $70,000. However, the chart above paints a less optimistic picture.

Since BTC reached a 30-day peak of $68,477 on July 22, it has entered a mild 4% correction phase, tumbling toward $66,160 at the time of writing on Wednesday July 24.

This shows that stronger bearish catalyst have overshadowed the bullish tailwinds from the Ethereum ETFs $1 billion first day trading volumes. Recent media reports show that Mt Gox related BTC payments could be behind Bitcoin ongoing price pullback.

Kraken Begins Distributing Bitcoin and Bitcoin Cash to Mt. Gox Creditors

Ten years after the infamous collapse of Mt. Gox, creditors are finally seeing their Bitcoin and Bitcoin Cash returned, with Kraken announcing the distribution of of over $9 billion worth of assets.

Kraken‘s CEO, Dave Ripley, highlighted on social media the exchange’s role in aiding the investigation and return of client funds since its selection by the Trustee nearly a decade ago, describing it as both a privilege and a duty.

Kraken, alongside Bitstamp, SBI VC Trade, Bitbank, and Coincheck, is responsible for returning billions in Bitcoin and Bitcoin Cash to Mt. Goxs 127,000 creditors, with an estimated $7 billion in cryptocurrency and cash to be distributed.

Mt. Gox has also transferred $2.85 billion worth of Bitcoin to new wallets, with significant amounts moved to addresses associated with Bitstamp. Mt. Gox still holds approximately $5.7 billion in Bitcoin reserves.

The BTC liquidity shock form the Mt Gox related payout, appears to have interfered and halted Bitcoin price rally in the last 48-hours.

BTC Price Forecast: Bulls Must Hold $65,000 Support

Bitcoin is currently trading at $66,316, having retraced 4% over the last 48 hours due to sell pressure from Mt. Gox payouts, which countered the bullish momentum from the Ethereum ETF launch. Technical indicators suggest that for the bullish trend to continue, Bitcoin must maintain the $65,000 support level.

Bitcoin Price Forecast BTCUSD | TradingView

The Parabolic SAR indicator shows bullish signs as long as BTC remains above $65,000. The EMA Wave indicator displays a weakening bullish momentum, indicating potential consolidation around current levels.

If BTC manages to hold above the $65,000 support, it could aim for the next resistance at $70,000. However, failing to maintain this support might result in a further decline, with significant support around $62,600.

Mainly, the continuation of the bullish phase will depend on bulls ability to sustain the $65,000 support level within the weekly timeframe.