- Bitcoin pushes past $27,000, eyeing resistance levels that could pave its way to $28,000.
- Grayscale’s GBTC discount contracts to 16%, reflecting a 90% probability of a US spot Bitcoin ETF by January 2024.
Bitcoin’s Resistance Odyssey: Beyond $27,000
Over the previous weekend, the crypto titan, Bitcoin (BTC), showcased robust upward movement, particularly influenced by significant whale accumulations. At the moment, Bitcoin stands at an impressive $27,241, augmenting by 1.29%, with its market capitalization at a towering $530 billion.
🚀 Breaking News 🚀 GBTC Discount Hits a Remarkable 16%! 📉#Grayscale and the #SEC gear up for a conversation on GBTC's transformation into a spot #BitcoinETF. With the SEC stepping back, the odds of a US spot #BTC ETF approval soar to 90% by Jan 2024. 🗓️ pic.twitter.com/xbN2bQ57U1
— Collin Brown (@CollinBrownXRP) October 16, 2023
This surge beyond the $27,000 echelon technically positions Bitcoin for potential headway up to $27,800. Nonetheless, such optimistic trajectories have kindled apprehensions. Especially long-standing Bitcoin enthusiasts exhibit trepidation amidst prospects of a notable price recalibration.
Decoding Bitcoin’s Potential Pathways
Resting comfortably above the $27,000 mark, Bitcoin presently enjoys a prime position above the 100-hourly Simple Moving Average. Yet, it finds itself grappling with a formidable resistance, encircling the $27,300 vicinity.
Further analysis elucidates the ensuing pivotal resistance to be proximate to $27,500. This is intriguingly juxtaposed with the 61.8% Fibonacci retracement level, which is a derivation from the oscillation ranging from the $28,285 zenith to the $26,550 nadir. Should Bitcoin tactically breach resistances at $27,500 and subsequently $27,650, it could herald a more pronounced ascent.
Conversely, if Bitcoin’s momentum stumbles beneath the $27,500 resistance, market dynamics could shift towards a downturn. The preliminary cushion during such a descent can be discerned around $27,000, closely shadowing the trendline. The following noteworthy support emerges near $26,900, in tandem with the 100-hourly Simple Moving Average.
GBTC’s Discount: Reflecting the Evolving ETF Landscape
This week beckons pivotal discourse between Grayscale and the US SEC, centered around GBTC’s metamorphosis into a spot Bitcoin ETF. Such collaborative dialogues emerge from the SEC’s strategic refraining from contesting a court decision favoring Grayscale. This scenario further amplifies the chances of a US spot Bitcoin ETF’s sanction, skyrocketing to a hopeful 90% by January 2024.
A tangible manifestation of this dynamic is the contraction in GBTC’s discount relative to Bitcoin‘s spot price, now receding below 16%. Earlier in the year, this discrepancy was a pronounced 30%. Recent insights from YCharts crystallize this evolution, with GBTC’s discount to Bitcoin’s Net Asset Value (NAV) tapering to 15.87% as of October 13. This trend’s inception can be traced back to mid-June when financial titans like BlackRock championed applications for spot Bitcoin ETFs, propelling the discount from a stark 44% to its present state.