Bitcoin, currently priced at $60,890, is at risk of undergoing a significant correction lasting up to four weeks, driven by intensified selling pressure from two major sources: Mt. Gox repayments and the German government's sale of 50,000 BTC.

Willy Woo, a prominent Bitcoin analyst with over 1.1 million followers, suggested in a June 22 post that Bitcoin's price could enter a cooling-off period before resuming its upward trajectory. He indicated that the market needs to stabilize, stating, "BTC price action will get as boring AF, the trading casino will go away, then the price will pump."

Echoing this sentiment, Rekt Capital, another well-known crypto analyst, highlighted potential downside risks for Bitcoin following recent market dynamics. Analyzing previous weekly closing prices, Rekt Capital noted that Bitcoin might face rejection from current levels, setting the stage for a continuation of bearish sentiment.

The looming threat of a month-long correction intensified with Mt. Gox's announcement on June 24 regarding its repayment plans for creditors. After over a decade of waiting, Mt. Gox creditors are expected to receive significant amounts of Bitcoin starting in July, totaling more than $9.4 billion. Eric Balchunas, a senior ETF analyst at Bloomberg, likened this potential influx of BTC into the market to a substantial negative impact on prices, comparable to wiping out half of all ETF inflows in one swift move.

In addition to Mt. Gox, the German government's recent movement of nearly 6,500 BTC from a long-held wallet further exacerbates the sell-off concerns. The wallet, which had accumulated 50,000 BTC since February 2024, represents a substantial amount of potential selling pressure worth over $3 billion at current prices.

Despite these bearish signals, some analysts remain optimistic that any downturn will be temporary. Pseudonymous trader Jelle pointed out on June 24 that Bitcoin's daily Relative Strength Index (RSI) has reached oversold conditions not seen in nearly a year. This historically suggests that while short-term selling pressure may be intense, it could also mark a buying opportunity, much like previous instances when Bitcoin traded at significantly lower levels.

As Bitcoin navigates these potential headwinds, market participants are closely monitoring technical indicators and institutional movements for further insights into the cryptocurrency's near-term price trajectory.