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Bitcoin Cash Price Surges 11% with Mt. Gox Set to Begin Repaying Creditors in BTC and BCH

By:
Ibrahim Ajibade
Updated: Jun 25, 2024, 20:16 GMT+00:00

Key Points:

  • Bitcoin Cash price surges 11% to reclaim the $390 territory on June 25, as bulls attempt to reverse the month-long downward trend.
  • Mt.Gox, the defunct crypto exchange which crashed in 2014 began to repay creditor on June 24 in BTC and BCH.
  • BCH price looks set to reclaim the $400 in the days ahead, based on recent swing in critical technical indicators.
Bitcoin Cash (BCH) Price

In this article:

Bitcoin Cash (BCH) Price Analysis

Bitcoin Cash price surged 11% to reclaim $390 as it was revealed that BCH would be among the coins used to repay Mt Gox creditors, technical indicators reveal that reclaim the $400 could trigger more gains in the days ahead.

Mt.Gox to Begin Repaying Creditors in BCH and BTC

Mt.Gox, the once-dominant cryptocurrency exchange that collapsed after losing 850,000 Bitcoin in 2014, is set to start repaying its creditors in July in Bitcoin (BTC) and Bitcoin Cash (BCH), according to the rehabilitation trustee overseeing the case.

“The Rehabilitation Trustee will commence the repayments in Bitcoin and Bitcoin Cash in due course to the cryptocurrency exchanges with which the Rehabilitation Trustee has completed the exchange and confirmation of the required information for implementing the repayments,” an announcement stated.

The exact timeline of repayments will come “in the order of the cryptocurrency exchanges with which the Rehabilitation Trustee will complete the exchange and confirmation of the require information.”

This news is a long-awaited relief for Mt. Gox’s estimated 127,000 creditors, who have been waiting over ten years to recover funds lost due to a security breach that went unnoticed for years. The exchange owes more than $9.4 billion worth of Bitcoin to these creditors.

Mt. Gox’s repayment plans have been closely followed in the cryptocurrency industry. In May, the exchange transferred $9.6 billion worth of Bitcoin to a new wallet, sparking speculation about the purpose of the move. Shortly thereafter, the rehabilitation trustee confirmed that the transfer was indeed part of the plan to repay creditors.

Bitcoin Cash Price Forecast: Road to $450?

BCH price has gained 11.6% in the last 24 hours, surging from the daily time frame low of $344 recorded on Tuesday, June 24, to reclaim the $390 level at the time of writing on June 25. This significant bounce-back suggests renewed interest from buyers, potentially reversing the recent downtrend.

In terms of short-term Bitcoin Cash price prediction, the Relative Strength Index (RSI) data, which has now crossed over the 30.0 threshold from below, suggests that bulls are now looking to regain a foothold in the BCH markets. This momentum shift is critical as it often marks the end of oversold conditions, leading to a potential rally.

Bitcoin Cash Price Forecast (BCH/USD) | TradingView
Bitcoin Cash Price Forecast (BCH/USD) | TradingView

Key resistance levels to watch include the upper Bollinger Band at $424.77, which aligns with the 20-day moving average. This level is crucial as breaking above it could signal the start of a more sustained upward movement. Conversely, the lower Bollinger Band at $348.39 provides immediate support, and a dip below this could indicate further bearish pressure. Monitoring these Bollinger Band indicators will be essential in gauging the next steps for BCH price action.

 

About the Author

Ibrahim Ajibade Ademolawa is a seasoned research analyst with a background in Commercial Banking and Web3 startups, specializing in DeFi and TradFi analysis. He holds a B.A. in Economics and is pursuing an MSc in Blockchain.

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