Bitcoin has significantly improved in the past week reaching a resistance level of $40,000. However, many analysts believe that Bitcoin might take a longer pause before breaking through to the next level despite improvement in sentiments.
In an email to Coindesk, Justin Chuh, a senior trader at Wave Financial, wrote:
“BTC easily broke through $35K, but I think it will probably have a harder time going through $40K this time.”
“Miners & sellers are coming in to cash out once more and buyers unable to push it higher after absorbing that hit.”
Bitcoin is still in its consolidation phase that might shift market sentiment from bullish to bearish. Chuh explained:
“BTC was already rejected again by its 200-day moving average, just like in early June, but it should try again after a breather, and hopefully not crawling lower than $35K.”
In another email to Coindesk, Alexandra Clark, a trader at U.K.-based digital-asset broker GlobalBlock, wrote:
“If (and when) bitcoin does cross the 200-day, this will signal confidence in the market and demonstrate to many players that the bulls have regained control of the market.”
Shift in GTBC discount
The Grayscale Bitcoin Trust (GBTC) shares have reduced their discount on Bitcoin. According to the data provided by the crypto derivatives research firm Skew, GTBC shares discount rate was 6.6%, its lowest margin since June 22. It had widened to 15% in mid-June.
It might have happened owing to some investors buying GBTC shares hoping the discount will reduce after an increase in the bullish sentiment. That way investors would be able to profit from the recent price gains and the low price discount.