- Bitcoin (BTC) has recently shown signs of weakness as it dropped below $40,000, falling by 7%.
- In a recent analysis by a well-known analyst, a critical level that Bitcoin needs to watch for its price path is emphasized.
- Grayscale continues to sell its Bitcoins due to strong selling pressure on GBTC shares after ETF approval.
Bitcoin price started this week with selling pressure: Can BTC, trading below $40,000, experience further decline?
$38,000 Is Crucial for Bitcoin Price
Bitcoin (BTC) has recently shown signs of weakness as it dropped by 7% to fall below $40,000. As of the time of writing, Bitcoin is trading at $40,080, with a market capitalization of $782 billion.
In a recent analysis by a well-known analyst, a critical level that Bitcoin needs to watch for its price path is emphasized. According to the analyst, a weekly close below $38,000 on the chart could be an indication of a potential decline for Bitcoin ($BTC), with the next target possibly around a strong support cluster at $33,000.
This critical support area combines several key technical elements, including the lower boundary of a parallel channel, the 0.5 Fibonacci retracement level, and the 50-week simple moving average. The combination of these factors forms a strong defensive line that could potentially prevent further decline in Bitcoin’s price, representing an important level for market participants to closely monitor.
Additionally, the analyst delves into historical trends observed in the last two Bitcoin (BTC) bull cycles. The analyst notes that in these previous cycles, Bitcoin often retraced to the 50% Fibonacci level after reaching the 78.6% Fibonacci level.
Drawing parallels with these historical patterns, the analyst observes that Bitcoin’s price has recently touched the 78.6% Fibonacci level again, indicating a potential correction. If the historical pattern continues, the analyst suggests that Bitcoin’s price could drop to $32,700, aligning with the 50% Fibonacci retracement level.
Grayscale Moving Significant Amounts of Bitcoin
Grayscale continues to sell its Bitcoins due to strong selling pressure on GBTC shares after ETF approval. In a significant move reported by Arkham, Grayscale executed a large transfer, moving approximately 17,140 Bitcoins worth around $660 million. The transaction took place at 22:17 UTC+8 and funds were moved to Coinbase Prime Deposit.
With Grayscale increasing its marketing efforts across various media channels, including television and banners, the competition among spot Bitcoin ETF issuers has intensified. As part of an extensive marketing campaign, Grayscale strategically placed banners promoting its Bitcoin ETF, especially in prominent locations such as “30th St Station” in Philly.
