- Grayscale’s ongoing BTC transfers to Coinbase raise fears of extended selling pressure.
- Bitcoin experiences a 20% decline over the past week, testing crucial support at $38,500.
- Market observers eye key levels, with potential for BTC to revisit $30,000 amid bearish sentiment.
Bitcoin market is facing increased uncertainty as Grayscale, the renowned asset manager behind the Grayscale Bitcoin Trust (GBTC), continues its substantial transfers of BTC to Coinbase, totaling approximately $335.19 million.
Data from Akram Intelligence reveals that, in addition to the previously reported $2.9 billion transfers, Grayscale sent an additional 8,593,075 BTC to the US-based crypto exchange on Tuesday. This move has ignited fears of a prolonged selling spree by Grayscale, putting downward pressure on the Bitcoin price.
The impact on Bitcoin has been significant, with the cryptocurrency experiencing a 20% decline over the past week and a half. Tuesday’s low of $38,500 tested a crucial support level, and although the cryptocurrency rebounded to $39,300 at the time of writing, concerns persist regarding the potential for further declines.
The duration of Grayscale’s selling spree remains uncertain, adding to the anxiety among market participants. If negative sentiment prevails, there is a possibility that Bitcoin could revisit the $30,000 mark, just above the key $29,000 level that marked the beginning of the recent bull run.
Investors are closely monitoring the $38,500 threshold as a critical level that, if breached, could pave the way for a descent to the next support at $37,750. A failure to hold above this level might trigger a further decline towards the major resistance at $35,600, with the potential to reach the next support level at $33,000.
In the worst-case scenario, where support levels are breached, the Bitcoin market may face a significant challenge. Key levels to watch for bullish momentum include the $29,000 to $30,000 range. A breakdown below these levels could signal a shift in the market structure, potentially giving bears the upper hand in the mid-term, at least until the anticipated halving event in April.
Historically, Bitcoin halving events have acted as major catalysts for price movements, and their influence cannot be understated. As Grayscale’s selling spree adds to the selling pressure in the market, cautious optimism prevails among market participants. The coming days and weeks will be critical in determining whether Bitcoin can regain its bullish momentum or succumb to further downward pressure.
Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.