Selling pressure eases as Grayscale sends 8.6K Bitcoin to Coinbase, falling below average

In the third week of January, Bitcoin (BTC) saw a modest 3% price rally after a surge Selling pressure exercised by asset manager Grayscale since January 12th.

Interestingly, there are signs that this selling pressure is now easing, suggesting a possible resumption of the bullish trend that Bitcoin has been experiencing since October 2023.

Grayscale's renewed selling spree

As before reportedSince the approval of the Bitcoin Spot Exchange Traded Fund (ETF), Grayscale has deposited a sizable sum of 103,134 BTC ($4.23 billion) into Coinbase Prime on January 25.

However, currently Data Arkham Intelligence, which tracks Grayscale's transfers, announced that the asset manager sent an additional 11,800 BTC to Coinbase on Friday. Aside from that, Grayscale resumed its selling spree towards the end of the month, sending a new transfer of 8,670 BTC to Coinbase for sale on Monday.

A portion of Grayscale’s latest BTC has been transferred to Coinbase. Source: Arkham Intelligence

Grayscale has now sent 123,604 BTC to the exchange, with an approximate value of over $5 billion. However, it is important to note an important aspect of this ongoing sell-off.

Despite the ongoing selling activity, this latest transfer to Coinbase represents the smallest amount of BTC that Grayscale is transferring to the exchange for sales purposes. This development suggests the possibility of a sell-off decline, potentially paving the way for further upside in Bitcoin price and another recovery lost levels.

The Bitcoin price outlook is brightening

Renowned crypto analyst Rekt Capital has provided insight into Bitcoin's recent price action and highlighted key levels and indicators to watch.

After According to Rekt's analysis, Bitcoin's weekly closing price managed to cross the lower boundary of an important range, which was around $41,300. This breakout from the lower range is seen as a positive development for the cryptocurrency.

BTC’s RSI suggests a price rally to the $43,000 level. Source: Rekt Capital on X

Rekt Capital also points out that BTC Relative Strength Index (RSI), a widely used momentum indicator, is currently challenging the downtrend line (in red in the chart above).

Rekt believes that a break of the RSI above this downtrend line would invalidate the bearish divergence. A bearish divergence occurs when the price of an asset increases but its associated indicator, in this case the RSI, moves in the opposite direction.

Should the RSI successfully break above the Downtrend lineRekt Capital believes that Bitcoin could potentially reach the upper limit of the mentioned range again, which is around $43,800. Reaching this range would indicate further recovery in Bitcoin price.

The daily chart shows BTC price recovery. Source: BTCUSDT on TradingView.com

Meanwhile, BTC continues to fight for the upper limit and is currently trading at $42,645, representing a 1.5% price rally in the last 24 hours.

Featured image from Shutterstock, chart from TradingView.com

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