Analyst Reveals This Event Could Trigger Another Massive Sell-Off for Bitcoin (BTC)

Bitcoin is currently trading at a gain to start the day. Over the course of the weekend, the price of the token picked up speed and broke through the $17,000 resistance level. At press time, Bitcoin is exhibiting bullish indicators and may proceed to advance toward the resistance level of $18,000. However, there are rumblings that terrible news is on the horizon for the king of cryptocurrencies.

Another Sell-Off Event for BTC?

Nicholas Merten, a cryptocurrency analyst, and influencer, recently warned in the latest video that another significant Bitcoin sell-off might take place very soon. According to Merten, the dormant sell-side pressure that resulted from the Mt. Gox scandal could rear its head and cause Bitcoin to see yet another leg downward.

Mt. Gox was a cryptocurrency exchange that was once responsible for over 70% of Bitcoin transactions. In 2014, the platform was hacked, and tens of thousands of Bitcoin were taken; the exchange subsequently declared bankruptcy.

According to Merten, there is a question that has to be asked, and that question is whether or not the Mt. Gox trust is going to result in a decrease in the price of BTC. More precisely, the issue that is more pertinent is whether or not the long-awaited unloading of this Bitcoin back to its original holders is going to occur as a result of demand from those holders to be able to finally obtain access to that Bitcoin.

Because we observed that Mt. Gox’s BTC holdings didn’t even drop by half during that previous bull market, the second concern the analyst raises is whether or not the sell-off from that will be the bottom.

It fell from approximately 200,000 to 137,000 BTC, says Merten, adding: 

“If we see this kind of sell pressure or in this case unloading of Bitcoin into the supply in the open market, what is that going to mean for price?”

Providing BTC to Mt. Gox’s old customers, as Merten suggests, could be a massive source of sell-side liquidity, he argues. The analyst predicts that this will lead to intense pressure from sellers.

Those who have held Bitcoin since it was in the double- or triple-digit range, or even just a few dozen or a few hundred dollars, will likely want to cash out their holdings, as Merten expects they will eventually come to believe that Bitcoin as an asset is obsolete.

There was a 1.83% increase in Bitcoin’s value during the past twenty-four hours, and a 3.06% increase over the past seven days, bringing its current value to $17,252.