Finishing up at a 3.77% discount, the Grayscale Bitcoin Trust completed their trading activities yesterday. Many institutional traders had selected GBTC as their choice to seize the outrageous momentum currently being put out by Bitcoin.
Bitcoin falls to $44K, and further losses are expected in the near future.
The GBTC has been trading at, more or less, a premium for a previous couple of months now. This premium rate is normally treated as a ‘bullish’ sign for Bitcoin. This is interesting because Bitcoin is in a bit of a dilemma, mainly due to the fact that the GBTC has been trading at a discounted price. This will, in turn, most likely result in Bitcoin having to potentially enter into a pullback on a long-term basis.
In fact, just earlier today, Bitcoin dropped to just over $44,000, a local low for them. But this has led to Bitcoin managing to print what seems like a double bottom pattern. This dip is also attributed to several other factors related to Bitcoin, as well as future contracts which are actually expiring today. This would mean that Bitcoin has managed to overcome one of its two main hurdles for the remainder of this month.
Nevertheless, Bitcoin will close this week and the month of February at an amount lesser than $48,500. This will lead to a continuous correction which itself can go as far down as $40,000. According to a report by Crypterium analytics, this seems to be the range that Bitcoin’s price will be placed as the week closes.
This week considered essential for Bitcoin as more losses are expected
As the month of February draws to a close, it is vital to observe the end of this week’s trading activities for Bitcoin. Simply put, if Bitcoin manages to close below the amount of $48,500, then the fall is expected to most likely continue, which can also result in a break-even occurring at $40,000.
Nevertheless, all of this will become increasingly clearer as we transition into the next period, and time will tell whether this predicted fall is simply another correction or a downtrend.