The Grayscale Bitcoin Trust has jumped by over 168% from December lows.
The trust is hoping for Bitcoin to have a bullish breakout above the YTD high.
The Grayscale Bitcoin Trust (GBTC) stock price has moved sideways in the past few days as Bitcoin remained stuck at $30,000. GBTC was trading at $20, the highest level since June last year. It has jumped by more than 168% from the lowest level in December.
Bitcoin consolidation continues
The Grayscale Bitcoin Trust is the biggest fund in the cryptocurrency industry. It has over $18.9 billion of assets under management (AUM). Over the years, the fund has jumped by more than 19,200% since its inception.
Grayscale Bitcoin Trust stores its assets in an offline cold wallet with Coinbase Custody Trust. Most companies that have filed for Bitcoin ETFs have also selected& Coinbase as the custodian of the funds.
GBTC creators have filed to convert the GBTC fund into an exchange-traded fund (ETF). Indeed, the company has sued the Securities and Exchange Commission (SEC) in a case that could change the industry.&
A ruling in favor of the company will open the possibility for other companies like Blackrock and Invesco to launch their spot ETFs.&
GBTC is widely known for its massive discount to its assets, The market price per share stands at $19.81 compared to its holdings per share of $22. This discount has been narrowing in the past few weeks.
The next key important catalyst for the GBTC stock price will be& Bitcoin’s price action. Bitcoin has remained stuck slightly above the key support level at $30,000. Therefore, if Bitcoin rebounds, there is a likelihood that the Grayscale Bitcoin Trust will continue rising as well.
GBTC stock price forecast
The daily chart shows that the GBTC share price has been in a strong bullish trend in the past few days. It has managed to move above the important resistance point at $18.53, the highest level on April 10th.&
The Grayscale Bitcoin Trust stock price has moved above the 50-day and 100-day exponential moving averages (EMA). Further, the Relative Strength Index (RSI) has moved slightly below the overbought level to 69. GBTC’s volume has moved downwards.
Therefore, there is a likelihood that the GBTC price will continue rising as buyers target the next key resistance level at $25. A drop below the support at $18.53 will invalidate the bullish view.
The post Is the Grayscale Bitcoin Trust (GBTC) stock a good buy now? appeared first on CoinJournal.
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