Bitcoin price at risk? Grayscale's $335 million Coinbase transfer has a $30,000 downfall potential

Bitcoin price has seen a significant shift as selling pressure increases, with BTC bears gaining the upper hand. The asset manager Grayscale, owner and manager of the Grayscale Bitcoin Trust (GBTC), is a major contributor to this trend.

Since trading spot Bitcoin exchange-traded funds (ETFs) began on January 12, Grayscale is on a selling spree, evidenced by large BTC transfers to US-based crypto exchange Coinbase.

Bitcoin price is under pressure as the Grayscale sell-off continues

According to Akrham Intelligence Datain addition to the previous one reported Grayscale sent another 8,593,075 BTC (approximately $335.19 million) to the exchange on Tuesday, suggesting the possibility of further selling activity.

A portion of Grayscale's additional BTC transfers will be transferred to Coinbase on Tuesday. Source: Arkham Intelligence

These developments have impacted the Bitcoin price, which has seen a significant downtrend in the last week and a half, falling by 20%.

On Tuesday, the largest cryptocurrency fell as low as $38,500, putting significant pressure on a key support level. Despite the bearish pressure, the $38,500 support level has so far proven resilient, with the cryptocurrency rallying to $39,300 at the time of writing.

Still, the duration of Grayscale's selloff remains uncertain, and if market sentiment continues to turn negative, Bitcoin could potentially reach $30,000 again. This value is just above the key $29,000 mark, which marked the start of the bull market that took Bitcoin to its 22-month high of $49,000 on January 11th.

Bears on the rise

If the $38,500 threshold gives in to Grayscale's selling pressure and profit-taking, market watchers should closely monitor the $37,750 level as the next resistance.

Failure to stay above this level would open the door to a possible decline towards major resistance at $35,600, which could further prevent a decline to the next resistance Support Level at $33,000.

However, if these support levels are broken and Bitcoin price continues its downtrend, the next key levels to watch for bullish momentum would be $29,000-$30,000. A fall below these levels could mean an end to the flow Bull market structure and to give the bears the upper hand in the medium term, at least until the expected halving event in April.

Historically, halving events have acted as major catalysts for Bitcoin price, and their influence has remained shown.

As the Bitcoin market faces increasing selling pressure and Grayscale's ongoing sell-off, market participants remain cautious about the possibility of a significant price decline. The coming days and weeks will be crucial in determining whether Bitcoin can regain its uptrend or succumb to further downward pressure.

The daily chart shows BTC price decline since January 12th. Source: BTCUSDT on TradingView.com

Featured image from Shutterstock, chart from TradingView.com

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