Bitcoin doesn’t look good for a sustained uptrend in BTC price, traders warn as GBTC hits new all-time discount.

Bitcoin
Bitcoin

tick down
$16,832

remained strictly below $17,000 when Wall Street opened on Dec. 19, with skeptical traders fearing further decline.

BTC/USD 1 hour candlestick chart (Bitstamp). Source: Trading View
BTC traders name time after upside potential
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD remained little changed around $16,700 over the weekend.

The pair saw little volatility initially as US equities fell slightly. At the time of writing, the S&P 500 and Nasdaq composite indices were down 0.5% and 1%, respectively.

There was not much to celebrate for bitcoin traders, and a consensus formed that it was possible to test lower levels next.

“Bearish as long as it stays below $19,000,” Crypto Poseidon summed up alongside a chart.

Annotated BTC/USD chart. Source: Crypto Poseidon/Twitter
Popular trader and analyst Rekt Capital pointed to $17,150 as a key level to recover to avoid further decline later.

“If BTC continues to turn away from resistance around $17,150…then price could drop as much as -20% in the coming weeks,” he predicted, uploading the BTC/USD chart over 1 month.

Rekt Capital added that there was “still time for BTC to complete a monthly close above the ~$17,150 level later this month” but that “a monthly close below ~$17,150 would confirm the start of a ‘a breakdown from here’.

Meanwhile, Michaël van de Poppe, founder and CEO of retail company Eight, offered a slightly more optimistic outlook.

With more US economic data expected towards the end of the week, BTC/USD had the potential to rally higher and target $17,300 to then present “short opportunities”.

“No break, then look for longs around $16.2k or $15.5k,” he countered.

Annotated BTC/USD chart. Source: Michael van de Poppe/Twitter
Grayscale CEO: FTX was “human error”
News that Binance.US, the U.S. subsidiary of crypto exchange Binance, had offered to take over assets from troubled lender Voyager, but that had no noticeable impact on market performance.

Related: “lower wave” for all markets? 5 things to know about Bitcoin this week

The latest development in the FTX saga, the announcement came as Binance itself continued to delve into what its CEO, Changpeng Zhao, again dubbed “FUD” over the weekend.

In a letter to investors, Michael Sonnenshein, CEO of investment firm Grayscale, attempted to draw a clear distinction between FTX and crypto as a whole. Grayscale’s parent company, Digital Currency Group (DCG), had also been caught up in the FTX aftermath.

“FTX was a human failure, not a crypto failure: too many investors were wronged. From crypto to mainstream finance, mainstream media and D.C., it seems few have escaped the deception of false narratives and false documentation,” he wrote.

“However, we should not confuse the actions of a few individuals and organizations with Bitcoin or Ethereum, the underlying blockchain technology, or smart contracts and decentralized financial applications.”
Grayscale’s flagship product, the Grayscale Bitcoin Trust (GBTC), was trading at a 48.7% discount to bitcoin’s spot price on Dec. 17 — the largest discount on record, according to Coinglass data. .

GBTC Premium vs Asset Holdings vs BTC/USD chart. Source: coin jar
The views, thoughts and opinions expressed herein are solely those of the authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Source: CoinTelegraph

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