Technical Analysis of BTC/USD for October 8, 2020

Crypto Industry News:

It is said that 150,000 Bitcoins from Mt. The Gox may hit the market on October 15. However, a number of factors suggest that this is unlikely given past events. In 2011-2013, Mt. Gox lost 850,000 BTC in the biggest hacker attack in Bitcoin history.

However, there are many hurdles that must be overcome before a refund can be made. The process has been consistently delayed since 2019, and returns are unlikely to happen any time soon.

On June 30, the trustee of Mt. Gox posted a statement on the official website of Mtgox.com, where it said the Tokyo District Court had extended the deadline to October 15. Based on this document, some investors have suggested that it could cause a movement of 150,000 BTC, potentially shaking the market.

However, there are two key reasons why the trustee would not want to transfer Bitcoin anytime soon. First, the extension concerns the submission of a rehabilitation plan, not the return of BTC. Simply put, October 15 sets the trustee to present the plan, not to reimburse the investors. Second, the trustee has continuously requested an extension over the past year. An identical statement was issued in March 2020 and April 2019, and the deadlines were extended.

October 15 is not an actual reimbursement deadline for users, and the trustee has delayed this process several times in the past. Based on these two factors, it's safe to assume that 150,000 BTC from Mt. The Gox trustee will not hit the markets in the short term.

Technical Market Outlook:

The BTC/USD pair has bounced from the local low made at the level of $10,495 and retraced 50% of the last spike down. Nevertheless, the supply side had capped the bounce around the level of $10,623 and currently the market is again moving downward. The next technical support is seen at the level of $10,430 and $10,344. If the yesterday's low is violated, then the sell-off might accelerate again. The level of $10,758 is now the local high and it is the key level for bulls and the level of $10,093 is the key level for bears.

Weekly Pivot Points:

WR3 - $11,471

WR2 - $11,178

WR1 - $10,858

Weekly Pivot - $10,602

WS1 - $10,300

WS2 - $10,024

WS3 - $9,715

Trading Recommendations:

The weekly trend on the BTC/USD pair remains up and there are no signs of trend reversal, so buy orders are preferred in the mid-term. All the dynamic corrections are still being used to buy the dips. The next mid-term target for bulls is seen at the level of $13,712. The key mid-term technical support is seen at the level of $10,000.

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