Bitcoin Price Breaks Above $27,000, Key Levels to Watch - COINTURK NEWS
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Bitcoin Price Breaks Above $27,000, Key Levels to Watch

8:33 am (49 days ago)
October 16, 2023

Bitcoin (BTC), the world’s largest cryptocurrency, made a strong upward move in the midst of whale accumulation and surpassed $27,000. According to technical analysis, the recent breakout above $27,000 has brought the possibility of a rise to $27,800; however, the expectation of selling in long-term BTC investments continues to lower the price.

Key Levels to Watch in Bitcoin

BTC is currently trading above $27,000 and is above the 100-hour Simple Moving Average. However, the hourly price chart faces significant resistance around $27,300.

The next important resistance is located around $27,500 or the Fibonacci 61.8% retracement level calculated between $26,550 and $28,285. A breakout at resistance levels such as $27,500 and $27,650 could open the way for further upward trend.

If Bitcoin fails to make a significant recovery above the $27,500 resistance, a potential downside may occur. The first support level in the downward direction is located around $27,000 and the trend line. The next important support level is around $26,900, along with the 100-hour Simple Moving Average.

Negative GBTC Premium Drops to 16%

Discussions are expected to begin this week between Grayscale and the U.S. Securities and Exchange Commission (SEC) regarding the conversion of the GBTC product into a spot Bitcoin ETF. This situation emerged after the SEC decided not to appeal the court decision in favor of Grayscale. Interestingly, this increased the possibility of spot Bitcoin ETF approval in the U.S. to 90% until January 2024.

Amidst all these developments, the negative premium of GBTC shares to the price of spot Bitcoin dropped below 16%. The negative premium had reached up to 30% earlier this year. According to the latest data from YCharts, the negative premium of Grayscale Bitcoin Trust (GBTC) to Bitcoin’s Net Asset Value (NAV) dropped to 15.87% as of October 13.

This decrease in the negative premium of GBTC started after BlackRock and several other asset management companies applied to the SEC for a spot Bitcoin ETF in mid-June. The negative premium was 44% on June 15 and dropped to 26.7% on July 5, and has been decreasing ever since.

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