Bitcoin (BTC) price crashed this week after Grayscale took to the markets and dumped a substantial amount of Bitcoin (BTC) worth around $2.14 billion. Bitcoin price dropped to a low of $38,505, below the $40,000 support. The market is uncertain as experts predict the asset could drop further.
Let’s find out what the chart is saying.
The price of Bitcoin (BTC) is $40,257 today. This represents a +0.6% price increase in the last 24 hours and a -2.5% price decrease in the past 7 days.
Bitcoin Statistics
- Bitcoin Market Cap Dominance: 48.1%
- Bitcoin Market Cap: $789.401 billion
- Total Supply: 21 million
- Circulating supply: 19.609 million
Bitcoin dominance is up this week, indicating that BTC gained strength against altcoins. It also indicates that despite it falling in price, altcoins experienced greater losses in comparison. The global crypto market cap also fell from $1.7 trillion to $1.64 trillion in the past week.
Previous Bitcoin Price Analysis
In last week’s analysis, BTC price was sitting in the demand zone as seen in the above chart. Many traders were expecting a bounce back since there was no reason for the asset to go further down. The demand zone served as a strong support (or not), promising to hold up the price of Bitcoin.
However, things took a turn for the worse as Bitcoin price broke below the ‘strong’ support on January 22, 2024, after
GrayScale BTC Selling Spree is a Preservation Strategy
Grayscale has dumped a total of ~52,227 BTC on the open market since January 12, when the ETF was approved.
More information now reveals that Grayscale’s strategic move to sell Bitcoin was in a bid to manage redemptions as investors are leaving GBTC due to its high fees and the shrinking price difference with spot ETFs.
Grayscale currently holds a mammoth 566,973 BTC in its reserves, worth about $23.21 billion. If the company decides to continue selling, the price of Bitcoin may not survive the onslaught.
Cascade Effect on Grayscale BTC Dump May Push BTC to $35,000
Bitcoin breaking below the key support level of $40,000 injects some fear into the market. Currently, BTC is retesting the support, and should it resist the price action, we could see a $38,000 and a $35,000 BTC soon.
Bitcoin price is below the 50-day moving average but above the 200-day moving average. If the price goes down, the 200-day (at $35,700) may offer strong support. However, if the bulls want to push BTC up, then they have to make sure the price remains above $40,000.
The 50-day moving average also presents a weak resistance at $41,700.
I still maintain my prior prediction of a $33,000 BTC by halving week and a $55,000 BTC by June 2024.
DISCLAIMER: The work included in this article is based on current events, technical charts, company news releases, and the author’s opinions. It may contain errors, and you should not make investment decisions based solely on what you read here.