In the third week of January, bitcoin (btc) demonstrated a modest 3% price recovery, following a surge selling pressure exercised by the asset manager Grayscale since January 12.
Interestingly, there are signs that this selling pressure is now easing, pointing to a possible restart of the bullish trend that bitcoin has been experiencing since October 2023.
Grayscale's Resumed Selling Spree
As previously reportedSince the approval of the bitcoin spot exchange-traded fund (ETF), Grayscale has deposited a significant sum of 103,134 btc ($4.23 billion) on Coinbase Prime as of January 25.
However, recent data from Arkham Intelligence, which tracks Grayscale transfers, reveals that the asset manager sent an additional 11,800 btc to Coinbase on Friday. Besides, Grayscale has resumed its selling spree as the month comes to a close, with a new transfer of 8,670 btc sent to Coinbase for sale on Monday.
Grayscale has now sent 123,604 btc to the exchange, worth approximately more than $5 billion. However, it is important to note one key aspect amid this ongoing selling wave.
Despite continued selling activity, this latest transfer to Coinbase represents the smallest amount of btc from Grayscale to the exchange for selling purposes. This development suggests the possibility of a reduction in the sell-off, which could pave the way for bitcoin price to make another bullish move and regain the previous. lost levels.
bitcoin Price Outlook Brightens
Renowned crypto analyst Rekt Capital has provided insight into the recent bitcoin price action, highlighting significant levels and indicators to watch.
According According to Rekt analysis, bitcoin's weekly close managed to break through the lower bound of a key range, which was around $41,300. This breakout from the low range is considered a positive development for cryptocurrencies.
Rekt Capital also notes that btc Relative Strength Index (RSI), a widely used momentum indicator, is currently challenging the downtrend line (in red on the chart above).
Rekt suggests that if the RSI can break above this downtrend line, it would invalidate the bearish divergence. A bearish divergence occurs when the price of an asset rises, but the related indicator, in this case the RSI, moves in the opposite direction.
If the RSI manages to surpass the level downtrend line, Rekt Capital believes that bitcoin could potentially revisit the upper limit of the mentioned range, which is approximately $43,800. Reaching this high range would indicate further recovery in bitcoin price.
Meanwhile, btc continues to reclaim upper territory, currently trading at $42,645, representing a 1.5% price recovery in the last 24 hours.
Featured image from Shutterstock, chart from TradingView.com
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