Bitcoin Rally Slows Down. How Will the Price React Next?
Bitcoin's growth has slowed amid Grayscale's blames on the SEC.
Grayscale, one of the largest Bitcoin ETFs on the market, is looking to attract a new class of investors and has asked the SEC to approve options on its spot ETF. However, the company faced a rejection. Grayscale viewed this move by the regulator as discrimination, as the SEC had previously approved options on ETFs tied to BTC futures.
Although Bitcoin closed the month with a 46% gain, the asset's rally seems to have slowed down. The RSI index is at 88, which indicates that it is overbought. This means that the Bitcoin price could start a correction in the near term. The increased demand for Bitcoin has led to a shortage of the asset on the OTC exchanges this week. Glassnode noted this feature as part of a broader trend that could potentially cause large swings in the price. Large investors who have previously been buying Bitcoin in bulk at a discount more may well lose this opportunity, which will undoubtedly affect the market.
At the time of writing, Bitcoin was trading at $61,965. Over the past 24 hours, the asset managed to test the $64,000 mark.
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The nearest resistance is near the level of $62,200, and the key resistance level could be $62,850, above which the price could rise to $64,000. Further upside could send the price towards the $65,000 levels. If the Bitcoin price rises above $65,700, the asset could once again reach an all-time high of $69,000.
On the negative side, when Bitcoin fails to overcome the nearest resistance level, the price could continue downward to the support levels of $60,000, $58,000 and $56,500.
This is not a 100 percent statement. The cryptocurrency market is very volatile. Investors should exercise caution.
Here's how Bitcoin could perform in March, according to expert analysis. Galaxy Digital CEO Michael Novogratz advises investors to be cautious, as the Bitcoin price could experience a correction before jumping to a record high. He believes the price could correct to $55,000.
$BTC is in price discovery phase. Maybe really for the first time since it’s been an asset as now the bulk of US wealth has easy access. Hard to predict where we stop.
— Mike Novogratz (@novogratz) February 28, 2024
