As reported by Bloomberg, the strategists were led by Nicolas Banegertzoglou Believe Bitcoin may lose its luster in the short term unless it manages to “break through” above $ 40,000. The major cryptocurrency broke through this key level on two occasions this month, once in the period leading up to all-time highs near $ 42,000 and the other just last week.
Strategists have decided that the Grayscale Bitcoin Trust, which currently has $ 23 billion in assets under management, will play a significant role in whether or not BTC returns to this level.
“The flow to the Grayscale Bitcoin Trust will likely need to maintain its pace of $ 100 million per day over the coming days and weeks for such a breach to occur.”
If BTC fails to take back $ 40,000, trend-following traders “could post a correction last week,” analysts said. This means that the path of least resistance can be less.
Since the $ 20,000 breakthrough in December, the bitcoin price has more than doubled in just three weeks. The digital currency has been limited in range in recent weeks as traders search for the next major trigger.
Meanwhile, Grayscale continues to exert a significant influence on the cryptocurrency market. Average weekly flows into Grayscale’s digital asset products It reached $ 250.7 million in the fourth quarter, Marking a new high ever. The Bitcoin Trust has had an average weekly cash flow of $ 217.1 million.
As Cointelegraph reported last week, Bitcoin price rose sharply after Grayscale reopened its services For new investors on January 13th.