{"id":352823,"date":"2024-07-26T20:05:35","date_gmt":"2024-07-26T14:35:35","guid":{"rendered":"https:\/\/dripp.zone\/news\/is-bitcoin-price-correction-done-crypto-news\/"},"modified":"2024-07-26T20:12:52","modified_gmt":"2024-07-26T14:42:52","slug":"is-bitcoin-price-correction-done-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/is-bitcoin-price-correction-done-crypto-news\/","title":{"rendered":"Is Bitcoin Price Correction Done? – Crypto News"},"content":{"rendered":"

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Bitcoin price crashed 5.55% between July 24 and 25, setting up a swing low of around $63,378. However, this downward move was undone in the New York session on Thursday, as BTC bounced nearly 5% and currently trades around $67,000. So, is the Bitcoin correction done?<\/p>\n

Why Is Bitcoin Price Correcting?<\/h2>\n

The 23% correction of Bitcoin price<\/a> between June 8 and July 5 can be attributed to the German government selling nearly 50,000 BTC. According to data intelligence platform Arkham, the wallet belonging to the German government now holds zero BTC. Despite the massive correction, Bitcoin price bounced back quickly, rallying 28% from the July 5 bottom of $53,329. As Bitcoin hovers around the $67,000 level, investors are wondering about the possibility of another BTC crash.<\/p>\n

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Bitcoin Supply Overhang Fails To Deter Bulls, For Now<\/strong><\/h2>\n

Let\u2019s analyze the BTC supply overhangs to assess whether the BTC price will correct more. From an investment or trading perspective, a supply overhang refers to a phenomenon when entities hold an excess supply of an asset that is available for sale but not actively being traded.<\/p>\n

Three BTC supply overhangs<\/p>\n

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  1. German Government\u2019s BTC.<\/li>\n
  2. Mt. Gox Creditors\u2019 BTC.<\/li>\n
  3. FTX Creditors\u2019 $16 billion in cash and crypto tokens.<\/li>\n<\/ol>\n

    German Government\u2019s 50,000 BTC was one example of supply overhang. Mt. Gox wallet currently holds 80,000 BTC, down from 167,000 in March 2018, which is another major supply overhang that investors are actively concerned about.<\/p>\n