BTC Price Could Drop 20%: Traders caution that the outlook for continuous price growth in Bitcoin is not promising as GBTC approaches a new record discount.
Bitcoin $16,835 stayed rigid below $17,000 at the Dec. 19 Wall Street open as skeptical traders feared more downside.
Bitcoin Investors Pause to Assess Further Gains
Cointelegraph Markets Pro and TradingView data indicated that Bitcoin to US Dollar exchange rate was rather stable throughout the weekend, trading around $16,700.
As U.S. shares opened lower, the pair showed very little opening volatility. The S&P 500 and the Nasdaq Composite Index were down 0.5% and 1%, respectively, as of this writing.
There was nothing to cheer about for Bitcoin traders, with most agreeing that the cryptocurrency is likely to hit lower levels shortly.
Crypto Poseidon characterized the situation in a chart, writing, Bearish as long as it stays below $19k.
One popular trading firm, Rekt Capital, identified $17,150 as a key milestone to recapture to prevent additional declines in the future.
He then uploaded a one-month BTC/USD chart and made the following prediction: “If BTC continues to reject from the $17150 resistance… then the price might plummet up to -20% to the downside in the next weeks.”
A Monthly Close below $17150 would signal the start of a breakdown from here,” Rekt Capital said. However, “there is still opportunity for BTC to execute a Monthly Close above the $17150 mark later this month.”
While some were pessimistic, Eight’s founder and CEO Michael van de Poppe expressed a more optimistic view.
BTC/USD could break to the upside and approach $17,300 before offering “short chances” as fresh U.S. economic data was expected by the end of the week.
If there is no breakout, he retorted, “Looking for longs around $16.2K or $15.5K.”
As Grayscale’s CEO put it, FTX was a failure of people
The latest news from Binance. The US, a branch of cryptocurrency exchange Binance, made an offer to purchase the assets of failing lender Voyager, but the news had little effect on the market.
The announcement marked the most recent chapter in the FTX controversy and came as Binance itself continued to struggle with what CEO Changpeng Zhao again referred to as “FUD” over the weekend.
Meanwhile, Michael Sonnenshein, CEO of investment firm Grayscale, sent a letter to investors in which he attempted to clarify the differences between FTX and crypto in general. Digital Currency Group (DCG), Grayscale’s parent business, was likewise caught up in the fallout of FTX.
Too many investors lost out on their money due to FTX, which means it was a failure of people rather than crypto. Fraudulent narratives and false documents appear to have affected nearly everyone in the crypto, financial, media, and political spheres, he stated.
However, “we should not generalize Bitcoin or Ethereum, the underlying blockchain technology, or smart contracts and decentralized financial applications based on the activities of a small number of people or organizations.”
According to statistics from Coinglass, on December 17 the Grayscale Bitcoin Trust (GBTC) traded at a discount of 48.7% to the Bitcoin spot price, the largest discount ever.