Bitcoin Price: Selloff of Grayscale’s Shares the Next Headwind

Summary:

Bitcoin price has erased its previous gains as JPMorgan forecasts that the selloff of Grayscale Bitcoin Trust shares will foster the bear market.

Bitcoin price has dropped by close to 13% over the past week. According to JPMorgan Chase & Co., the selling of Grayscale Bitcoin Trust shared between June and July is likely to foster the bearish market for Bitcoin price. The selloff will mark the expiry of the six-month lockup period.

Notably, the sellers will comprise investors who bought the shares six months ago when the crypto was on a rally. Even with this week’s upward correction, the bank remains bearish on Bitcoin and the larger crypto market.

BTC/USD technical analysis

Bitcoin price has erased gains from the previous session. On Thursday, it rebounded from an intraday low of 32,284.47 to a high of 35,503.25 earlier on Friday. At the time of writing, it was down by 3.96% at 33,278.11. Since last Friday, the crypto has declined by close to 13%. On a four-hour chart, it is trading below the 25 and 50-day exponential moving averages.

I expect Bitcoin price to record further losses in the ensuing sessions. It is likely to find support along Thursday’s low of 32,284.47. If that happens, it may be range-bound in the near term, with the 25-day EMA forming its resistance level at 34,000.

A move below the aforementioned support level will have the bears retesting the psychological level of 30,000. On the flip side, a move above 34,000 will clear the path for the week’s high of 36,000.