After moving sideways for weeks, BTC price appeared to be close to a new high. However, the cryptocurrency appears to be stuck just below the USD 60,000 resistance level.
Analyst Ben Lilly released a report stating what caused the stalemate and how BTC has a “bullish combination” for the following weeks. The analyst registered large selling walls near current levels. This is part of a strategy to attract liquidity.
They do this by freezing prices near a breakout. After letting go of the valve, you can liquidate both the established and the newly added positions.
The key to getting the stock out of its current price is to “unlock” a large amount of BTC from the Grayscale fund, which could add some positive momentum. These unlocks will begin in late April, the analyst says:
To me, this continued sideways scenario makes the most sense, considering how fast we’ve climbed since last week. But when it comes to Bitcoin, if those walls are lifted and the fake-out / liquidity-grab maneuver doesn’t take place, then we’re off to the races.
Jet fuel up. The financing rates have been reset due to the decline. Now the liquidity is higher, time to beat it. pic.twitter.com/icLm7PjBZL
– Ben Lilly (@MrBenLilly) April 4, 2021
BTC is trading at USD 58,858 with a 1.2% gain on the 24-hour chart and 5.6% on the weekly chart.
Converting Grayscale Bitcoin Trust into an ETF
By and large, the Grayscale Bitcoin Trust (GBTC) has lost its monopoly as the only investment vehicle for institutions seeking exposure to Bitcoin. The emergence of Exchange Traded Funds (ETFs) in Canada has attracted great institutional interest. The investment firm Grayscale recognizes this.
In a recent publication, the company announced that it had “committed” to converting GBTC into an ETF. Grayscale tried unsuccessfully between 2016 and 2017 and believes the industry has matured. The investment firm stated:
We are still committed to converting GBTC into an ETF today, although the timing will depend on the regulatory environment. When GBTC is converted into an ETF, shareholders of GBTC publicly traded shares will not need to take any action and the management fee will be reduced accordingly.
Therefore, they do not offer a specific date for the possible approval or conversion of the GBTC. The company says it is “focused” long term. A few hours after that announcement, the GBTC premium rose 5% after trading negative for the entire month of March.
The GBTC premium rose ~ 5% after Grayscale said it was 100% committed to converting GBTC into an ETF. Pic.twitter.com/P5dHDk1tJr
– Lex Moskovski (@mskvsk) April 5, 2021