Discounted GBTC Could Hint of Bearish Sentiment Amongst Institutional Traders. The Grayscale Bitcoin Trust has more or less traded at a premium for the last few months as institutional traders chose GBTC to capture the bullish momentum exhibited by Bitcoin.
A premium rate on the Grayscale Bitcoin Trust (GBTC) is usually regarded as a bullish indicator for Bitcoin. Now that the same Grayscale Bitcoin Trust (GBTC) is trading at a discount, the tables might have turned on Bitcoin as it enters what looks like a possible long-term pullback.
Bitcoin Dips to $44k, Could Fall Further with the Monthly Close. Earlier today, Bitcoin dipped to a local low of $44,090 – Binance rate. With this move, Bitcoin has printed what looks like a double-bottom pattern on the 6-hour BTC/USDT chart as seen in the screenshot below.
- Grayscale Bitcoin Trust (GBTC) closed yesterday at a 3.77% discount
- A discounted GBTC could point towards bearish Bitcoin sentiment amongst institutional investors
- Bitcoin dipped to the $44k support zone and could be headed lower with the weekly/monthly close
The Grayscale Bitcoin Trust (GBTC) closed trading yesterday, February 25th, at a 3.77% discount. The team at Glassnode highlighted this event and shared it via the following tweet which includes an accompanying chart demonstrating the discounted value of GBTC.
$GBTC closed at a -3.77% discount yesterday. #Bitcoin
Chart: https://t.co/Qc0vs7I9e3 pic.twitter.com/PsQEBqHH2L
— glassnode (@glassnode) February 26, 2021
Bitcoin’s Weekly/Monthly Close Will Be Vital in Maintaining Bullish Momentum
Bitcoin’s dip earlier today could be attributed to the fact that several BTC options and futures contracts expire today, February 26th. This means that Bitcoin has overcome one of two hurdles left in the month of February.
The second hurdle is the weekly and monthly close this Sunday, February 28th, and the $44k support zone will once again be an area to watch during the event.
According to the team at Crypterium analytics, Bitcoin closing the week and month lower than $48,500, will result in a continuation of its correction to as far down as $40k. They explained the possible scenario for Bitcoin as follows.
The main support level at the moment is the $41,000 — $42,500 range. Most likely, it is in this range that the Bitcoin price will come in the coming days.
It will also be essential to watch the close of the weekly candlestick. If it closes below $48,500, then the fall will continue, and the chart may break even the $40,000 level. In the coming days, it will become clearer whether this fall is a transition to a downtrend or if this is another correction in the market.