Connect with us

Cryptocurrency

TA: Bitcoin Price Won’t Fall Quietly: Supports Major Keys to Watch

Avatar

Published

on

Bitcoin price is consolidating losses above the $19,200 support area against the US Dollar. BTC could start a new increase if there is a clear move above $19,700.

  • Bitcoin is facing a barrier near the $19,550 and $19,600 resistance levels.
  • The price is below $20,100 and a 100 hourly simple moving average.
  • There was a break above the major downtrend line with resistance near $19,450 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could gain bullish momentum if there is a clear move above the $19,700 resistance.

Bitcoin price holds major support

Bitcoin price started a new low From a level well above $2,200. BTC fell below $20,000 and $19,800 to move into a bearish zone.

The bears even pushed the price below the $19,500 level and the 100 hourly simple moving average. It traded as low as $19,249 and recently started a short-term bullish correction. There was a slight increase above the $19,400 and $19,500 levels.

There was a break above the major downtrend line with resistance near $19,450 on the hourly chart of the BTC/USD pair. Bitcoin price tested the 23.6% Fibonacci retracement level of the downside move from $20,443 high to $19,249.

On the upside, there is an immediate resistance near the $19,550 level. The next major resistance is near the $19,700 area and Simple moving average per 100 hours.

Advertisement

Source: BTCUSD on TradingView.com

A proper close above the $19,700 resistance could send the price towards the 50% Fib retracement level of the downside move from the $20,443 swing high to the $19,249 low. Any further gains could send the price above the $20,000 resistance. In the mentioned case, the price may rise towards the $20,500 resistance level.

Dips Limited in BTC?

If Bitcoin fails to rise above the $19,700 resistance area, it may continue to decline. There is immediate support to the downside near the $19,400 region.

The next major support is near the $19,250 area. A break-down below the $19,250 support area could lead to further losses. In the mentioned case, there is a risk of a move towards the $18,500 support area.

Technical indicators:

Advertisement

Hourly MACD – The MACD is now losing its momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Key support levels – $19,400, followed by $19,250.

Key resistance levels – $19,700, $20,000 and $20,500.

Advertisement

Source link

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published.

Cryptocurrency

GBTC Elevator to Hell Sees Bitcoin Spot Price Close to 100% Premium

Avatar

Published

on

bitcoin (BTCThe investment vehicle, Grayscale Bitcoin Trust (GBTC), is trading at nearly 50% below the price of BTC in the spot markets.

Data from the on-chain analytics platform Coinglass It confirms that on December 8, GBTC shares hit a new record high of -47.2% against BTC/USD.

GBTC problems are piling up after FTX

In the latest bout of nerves to hit the bitcoin industry since the fall of FTX, the price of GBTC is close to half the price against that of Bitcoin.

The largest institutional investment vehicle in bitcoin, with Assets worth about $10 billionGBTC has faced many challenges in recent years.

Its share price previously traded higher than BTC/USD, resulting in a so-called “GBTC premium.” Since 2021, however, that premium has turned negative, but the resulting “discount” has done little to attract additional institutional interest.

Advertisement

As Cointelegraph reported, more than a few The main exceptions Like ARK Invest, GBTC is in a weak position as an operator of Grayscale, part of Digital Currency Group (DCG), is trying to turn it into an exchange-traded fund (ETF) – prosecution US regulators are getting in the way.

Amid the legal battle, FTX has raised liquidity issues elsewhere in the DCG empire, and this has led to suspicions about Grayscale and GBTC. greyscale back off To show evidence of its BTC reserves last month, despite assurances by custodian Coinbase that its assets are safe, added to the tensions.

Bitfinex’ed commented, “Grayscale is in some real trouble if they have to reveal the whereabouts of all the GBTC-enabled bitcoins” Wrote In part of a Twitter discussion on the subject this week.

This week, things got worse, like Grayscale He faced a lawsuit From investor Fir Tree regarding what it calls “shareholder unfriendly actions.”

GBTC premium vs asset holdings vs BTC/USD chart. Source: Coinglass

Meanwhile, public interest in crypto ETFs has declined this year, separate data She suggests.

Woo: “Partly bullish” issues for Bitcoin

However, the GBTC premium, having barely recovered from previous record lows, sank further against Bitcoin, which is known to correlate with net asset value (NAV).

Advertisement

Related: Why did the bitcoin price drop today?

“GBTC USD discount on bitcoin NAV is on the express elevator to hell. => Sentiment = bearish,” Timothy Peterson, investment director at Cane Island Alternative Advisors, commented. Summarization.

Others lamented the slow pace of change in the United States as fanning the fire.

“Much of the pain could have been avoided this year if GBTC had been converted into a SEC ETF to keep everyone safe!” Investor and entrepreneur Alistair Milne reactionechoing popular sentiment from recent weeks.

Meanwhile, Willy Woo, creator of stats resource Woobull, argued that the impact of fading GBTC exposure was not necessarily a direct negative for BTC price strength.

Advertisement

GBTC/DCG/Genesis fears a bearish cloud is hanging in the market. But part of the impact was “unexpectedly” bullish for Bitcoin. chirp on December 5th.

“37.5% of people who sold GBTC bought spot Bitcoin to take custody. Selling GBTC does not affect the price of Bitcoin, and buying spot affects the price of Bitcoin.”

An additional Twitter survey questioned platform users who hold GBTC by default about their motives for selling.

Willy Woo Twitter poll (screenshot). Source: Willy Woo / Twitter

The views, ideas and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.