Bitcoin Price Prediction – Can FTX Hold $40,000 After Selling $1 Billion in Grayscale’s Bitcoin ETF? Or is it a bull market for Bitcoin?

adminJanuary 26, 2024

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This week, Bitcoin fell significantly from its all-time high of $49,000 to $40,000 due to concerns surrounding Mt. Gox and FTX, creating uncertainty about its future direction.

Despite the surge fueled by news from CNA, which features endorsements and participation from major players like BlackRock, some analysts predict that Bitcoin could fall as low as $31,000.

Bitcoin price analysis and price prediction

Bitcoin price is experiencing a downward trend after experiencing a strong rejection at the psychological level of $49,000. Despite the challenges, Bitcoin successfully recovered the psychological level of $40,000 after reaching a low of $38,500.

Bitcoin holders are in uncertain territory until the price falls and remains above the $40,700 support for three days. Looking at technical indicators, it becomes clear that Bitcoin has crossed a critical resistance level.

The stochastic RSI indicates overbought conditions reaching 90, historically indicating an imminent correction. These observations are further strengthened on the daily chart, further supporting the possibility of a decline.

Regular RSI on weekly and daily charts indicates bearish divergence. The chart shows an upward trend and the RSI shows a downward trend, a signal often associated with a hidden bearish divergence.

Despite initial skepticism about the possibility of a significant move, Bitcoin actually experienced a significant decline.

bitcoin price graph

Considering investor behavior, when the stochastic RSI exceeds 70, investors typically sell, while when it falls below 30, it triggers buying. The oversold phase represents a period of accumulation, resulting in significant profits for those who buy strategically during the decline.

If the bulls win, a decisive move above $40,726 would pave the way for Bitcoin price to surpass $43,750 and, in a very optimistic scenario, a recovery to the $49,000 level. A very optimistic outcome could push BTC above $50,000, a psychological level last tested in December 2021.

On the other hand, with the relative strength index (RSI) below 50 and continuing to decline, the price of Bitcoin is likely to continue its downward trend and fall below the support level of $37,800. Losing this level of buyer congestion could lead BTC to the psychological level of $30,000.

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News of Mt. Gox Bitcoin redemption sparks market concern and price volatility

Paying attention to the recent situation, Mt. Confirmation of Bitcoin repayment to Gox’s creditors raises concerns about a potential market sell-off. It is expected that if significant amounts of Bitcoin and Bitcoin Cash are redeemed, it could have an impact on the market.

Looking back at historical events such as the Mt. Gox incident in 2014, it is clear that Bitcoin has the ability to bounce back despite difficult circumstances. Experts say Mt. Gox Trustees have varying perspectives on how to handle Bitcoin redemptions.

Some expect gradual repayments to be made over several months, while others suggest a lump sum repayment will be made all at once. “Of course, the selling pressure will be relatively limited,” said Yang Min-dao. “After all, a lot of the debt has been sold over the years and the prices have already been reflected in the market.”

Over the past 24 hours, BTC price has risen 1% and is currently trading at $40,068. The lowest and highest 24-hour prices are $39,545 and $40,254, respectively. Moreover, trading volume has decreased by 12% in the last 24 hours. Visit our guide to the best altcoins to buy now in 2023 here.

FTX $1 Billion Sell – Domino Effect and Market Analysis for Bitcoin

BTC price fell after Bitcoin ETF approval. In theory, once FTX completes the sale of its key holdings, selling pressure could ease, given that it is relatively rare for bankruptcy estates to liquidate holdings.

Since Grayscale Bitcoin Trust (GBTC) converted to an exchange-traded fund earlier this month, investors have sold more than $2 billion worth of GBTC.

BREAKING NEWS: According to a report from CoinDesk, up to half of the $2 billion in GBTC outflows appears to have come from FTX liquidating 22 million shares.
Additionally, FTX’s sister hedge fund Alameda Research today voluntarily dropped its lawsuit against Grayscale Investments. pic.twitter.com/zm9JgI5PEh
— Bitcoin News (@BitcoinNewsCom) January 22, 2024

Much of the exit involved the sale of 22 million shares by FTX’s bankruptcy estate, according to personal data reviewed by CoinDesk and insights from two people familiar with the situation.

A number of spot Bitcoin ETFs began trading on January 11 and finally received approval from the U.S. Securities and Exchange Commission after years of delays.

However, Grayscale funds, comprised of less attractive closed-end funds, have already been around for a decade and had nearly $30 billion in assets when the SEC approved 10 newly created Bitcoin ETFs and their conversion to ETFs. accumulated.

While recent launches by BlackRock and Fidelity have seen inflows, GBTC has experienced billions of dollars in Bitcoin withdrawals. Data seen by CoinDesk shows that FTX played a significant role in this withdrawal. The 22 million shares sold by FTX valued FTX’s ownership of GBTC at nearly $1 billion.

Bitcoin (BTC) price fell following the ETF’s approval, a sharp contrast to the high expectations prior to the SEC’s announcement. The Bitcoin ETF was expected to provide a more accessible way for ordinary investors to enter the Bitcoin market, leading to bullish predictions about the price of BTC.

Instead, Bitcoin experienced a decline. In theory, now that FTX has completed the sale of its holdings, selling pressure could ease, considering that liquidation of a bankruptcy estate’s holdings is a relatively rare event.

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