Will Bitcoin Price Crash Again? Grayscale’s $335M Coinbase Transfer Sparks Concern

Bitcoin’s value continues to go down, dipping below the $40,000 mark, and market analysts call this slump to Grayscale’s persistent liquidation and substantial Bitcoin sales. Grayscale has been a critical player in this trend since spot Bitcoin ETF trading was initiated on January 12.

According to data from Arkham Intelligence, Grayscale’s selling spree is evident in additional transfers of 8,593,075 BTC (approximately $335.19 million) to Coinbase, supplementing the previously reported 69,994 BTC ($2.9 billion) transfers. These developments have significantly impacted Bitcoin’s price, marking a substantial 20% decline over the past week and a half.

Bitcoin Price Downtrend continues

On Tuesday, Bitcoin’s price hit a low of $38,500, exerting considerable pressure on a crucial support level. However, the $38,500 support has demonstrated resilience, with Bitcoin bouncing back to $39,300 at the time of writing.

How Low Will Bitcoin Price Drop?

Notably, the current market trend reflects an increasing influence of bears, with a critical focus on the $38,500 threshold. If this level succumbs to Grayscale’s selling pressure, attention should turn to the $37,750 as the next resistance.

If it fails to maintain above this point, it might lead to a potential decline toward the significant resistance at $35,600, acting as a defense against a dip to the next support level at $33,000. Bitcoin could face further challenges in a sustained downtrend, with critical levels for potential bullish momentum between $29,000 and $30,000. 

Can Halving Event Reverse the Bear Trend? 

On top of this, it is quite noteworthy that halving events have historically acted as major catalysts for Bitcoin’s price, and their impact has been evident in the market. With the bearish clouds hovering over the Bitcoin price ahead of the halving, an extended descending trend is possible.#BTC #Write2Earn: #tia