Bitcoin Price Surges Amid Whale Accumulation
The price of Bitcoin (BTC) experienced a strong upward movement over the weekend, with whales accumulating the cryptocurrency. Currently, Bitcoin is trading at $27,241, up 1.29%, and has a market cap of $530 billion. The breakout above $27,000 has opened the door for further gains, potentially up to $27,800 according to technical charts. However, long-term Bitcoin holders are expressing fear amid concerns of a significant price correction.
Key Levels to Watch
Bitcoin is currently trading above $27,000 and is positioned above the 100-hourly Simple Moving Average. However, it is facing significant resistance around the $27,300 mark. The next crucial resistance level is around $27,500 or the 61.8% Fibonacci retracement level. A decisive breakthrough above these levels could lead to a more substantial uptrend. On the downside, initial support is at $27,000 and the trendline, with significant support at $26,900 along with the 100-hourly Simple Moving Average.
Grayscale’s GBTC Discount Decreases
Grayscale and the US Securities and Exchange Commission (SEC) are expected to discuss converting the Grayscale Bitcoin Trust (GBTC) product into a spot Bitcoin exchange-traded fund (ETF). The SEC’s decision not to contest a court ruling in favor of Grayscale has increased the chances of a spot Bitcoin ETF approval in the US to 90% by January 2024. As a result of these developments, the discount of GBTC shares to the spot Bitcoin price has dropped below 16%, compared to a high of 30% earlier this year.
According to recent data from YCharts, the discount of GBTC to Bitcoin’s Net Asset Value (NAV) is currently 15.87% as of October 13. The discount has been decreasing steadily since mid-June, when BlackRock and other financial institutions applied for spot Bitcoin ETFs.
Hot Take: Positive Outlook for Bitcoin
Despite concerns about a potential price correction, the recent surge in Bitcoin’s price and the narrowing of the GBTC discount indicate positive momentum for the cryptocurrency. With whales accumulating Bitcoin and the possibility of a spot Bitcoin ETF approval in the US, there is optimism for further upward movement. However, it is important to conduct thorough market research before investing in cryptocurrencies to mitigate potential risks.
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