- Bitcoin has hit a crucial area of resistance at $52,000
- A weekly close above this will signal party time for the entire market
- Will Genesis’ sale of $1.6 billion in GBTC shares cut the power?
Bitcoin has hit the most crucial area of resistance in its entire run-up from $15,000, an area that will signal the next phase of the bull market. However, with Genesis being granted permission to sell $1.6 billion in GBTC shares, there is a chance that this area will prove harder to crack than first thought.
The Final Hurdle
Bitcoin’s ETF-fueled run to $52,000 has but all the doubters and naysayers firmly in their place, and it is currently on the cusp of the most important area of resistance in the entire run:
As this chart shows, the $52,000 region acted as resistance in both September and December 2021, with the latter occasion marking the start of the bear market. Bitcoin is not right back at that level again, and if it can close the week above that region then Bitcoin is in a similar position to where it was in November 2020.
Genesis Stands in the Way
While Bitcoin therefore looks primed to begin a period of acceleration, there may be a fly in the ointment: a US bankruptcy judge last week granted bankrupt crypto lender Genesis permission to sell $1.6 billion in Grayscale Bitcoin Trust (GBTC) shares, allowing it to pay creditors who have been awaiting payouts since the lender went bust last year.
This means that $1.6 billion worth of bitcoin will be sold, a move that follows hot on the heels of Grayscale’s sale of close to double that, which led to a retrace in the price of bitcoin following the approval of its ETF in January.
Bitcoin bulls will therefore have to hope that the market can absorb the sales and that the promising technical structure will be maintained, allowing the good times to continue.
