Bitcoin Shows Modest Recovery as Grayscale Resumes Selling
In the third week of January, Bitcoin (BTC) experienced a 3% price recovery after facing selling pressure from Grayscale. However, there are signs that this selling pressure is diminishing, indicating a potential restart of the bullish trend.
Grayscale’s Continued Selling Spree
Grayscale has been depositing a significant amount of BTC into Coinbase Prime since the approval of the Bitcoin spot ETF. Recent data from Arkham Intelligence reveals that Grayscale sent an additional 11,800 BTC to Coinbase on Friday and another 8,670 BTC on Monday for selling purposes.
Despite the ongoing selling spree, the latest transfer to Coinbase represents Grayscale’s smallest amount for selling, suggesting a reduction in the selling activity and a possible upward move in Bitcoin’s price.
Positive Price Outlook for Bitcoin
Crypto analyst Rekt Capital highlights key levels and indicators to watch for Bitcoin’s price action. The weekly close managed to surpass the lower boundary of a key range at $41,300, which is seen as a positive development.
The Relative Strength Index (RSI) is currently challenging the downtrend line, and if it breaks above it, it would invalidate the bearish divergence. Rekt Capital believes that Bitcoin could potentially revisit the upper boundary of the range at $43,800, indicating further recovery in price.
Bitcoin Continues to Recover
Bitcoin is currently trading at $42,645 with a 1.5% price recovery in the past 24 hours.
Hot Take: Potential Bullish Trend Restart for Bitcoin
The recent decrease in selling pressure from Grayscale and positive price indicators suggest that Bitcoin may be on the verge of restarting its bullish trend. With the potential reduction in selling activity, Bitcoin could regain lost levels and experience further price recovery.
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