Grayscale Bitcoin Trust Continues to Sell, Putting Pressure on BTC Price
The Bitcoin price is facing a significant shift as selling pressure increases, largely due to Grayscale’s actions. Grayscale, the owner of the Grayscale Bitcoin Trust (GBTC), has been actively selling BTC since the launch of spot Bitcoin exchange-traded funds (ETFs) on January 12. Data from Akrham Intelligence reveals that Grayscale transferred an additional 8,593,075 BTC (approximately $335.19 million) to Coinbase on Tuesday, indicating the possibility of further selling activities.
Bitcoin Price Decline and Support Level Resilience
These continuous sell-offs have had a substantial impact on the Bitcoin price, which has dropped by 20% in the past week and a half. The cryptocurrency reached a low of $38,500 but managed to bounce back to $39,300 at the time of writing. However, if market sentiment remains negative, Bitcoin could potentially revisit the $30,000 mark, just above the crucial support level of $29,000.
Potential Bearish Scenario and Key Support Levels
If Grayscale’s selling pressure persists and breaks the $38,500 threshold, market observers should closely monitor the next resistance level at $37,750. Failing to hold above this level could lead to a decline towards the major resistance at $35,600 and potentially down to the support level at $33,000. A further breakdown below these levels would signal a shift in market structure and give bears control until the anticipated halving event in April.
Halving Events and Bitcoin Price Catalysts
Historically, halving events have had a significant impact on the Bitcoin price. As such, market participants are cautious about the potential for a major price plunge. The coming days and weeks will be crucial in determining whether Bitcoin can regain its bullish momentum or succumb to further downward pressure.
Hot Take: Bitcoin Faces Selling Pressure as Grayscale Continues to Sell
The ongoing selling spree by Grayscale, coupled with the negative market sentiment, has put the Bitcoin price under significant pressure. Despite bouncing back from the $38,500 support level, there is still uncertainty about the duration of Grayscale’s selling activities. If the selling pressure continues, Bitcoin could potentially revisit key support levels around $30,000. Market observers are closely monitoring resistance levels at $37,750 and $35,600. The next few weeks will be critical in determining the direction of the market and whether Bitcoin can maintain its bullish momentum.
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