GrayScale’s GBTC Price Chart Shows Potential Bullish Trend, According to Analysts
According to analysis from CoinDesk, the price chart for Grayscale Bitcoin Trust (GBTC) is showing a strong bullish pattern that indicates the possibility of a future price increase. The daily chart for GBTC is showing a reverse head-and-shoulders pattern, which is considered a signal of a potential trend reversal from bearish to bullish.
The reverse head-and-shoulders pattern that has appeared on GBTC’s chart after a long and severe downward trend is interpreted as a sign of a potential trend reversal. GBTC rose to its six-month high of $13.54 on the previous day, testing the neckline resistance line of the reverse head-and-shoulders pattern. If GBTC breaks through this resistance line and closes above it, it is expected to confirm a resistance line breakout, indicating the opening of the door for further gains.
Conor Maloney, a chart analyst and author of the book VocabTA, said, “We anatomically and structurally recognize a reverse head-and-shoulders pattern around $13 near the neckline.” He added, “If GBTC closes above this level, the trend reversal pattern will be fully confirmed, and the measured target is almost 50% higher than the current price, at $19.”
Despite the recent decline in the underlying asset Bitcoin, GBTC has risen by more than 17% this week. The increase in GBTC is analyzed as a reaction to the SEC’s decision to reject Grayscale’s Bitcoin physical ETF conversion request, which has raised questions.
Grayscale, the operator of GBTC, is currently in litigation against the SEC, which rejected their Bitcoin physical ETF conversion request.
Marcus Tilley, Head of Research and Strategy at Matrixport, said, “If the judge is more favorable to Grayscale, there is a possibility that GBTC will be converted to a Bitcoin ETF, and if that happens, the discount for GBTC compared to Bitcoin will quickly shrink.”
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