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- 1 The Grayscale Bitcoin Trust stock has exited its higher high formation and is signaling a retracement.
- 2 After a giant upmove, the stock is ready to cool off the gains.
Grayscale Bitcoin Trust (NYSE: GBTC) has undergone profit booking and slipped to the 50-day EMA mark. However, the stock is on a bullish trajectory and may attain a pullback soon. The recent outflow of over $579 Million from GBTC affected the stock and a bulk selloff forced the stock to breach the channel lows of $38, replicating selling pressure.
The GBTC stock was trading in a rising channel and persisted in forming the higher highs and claimed the highs of $43. The stock may change its trend and will face some declines amidst the volatile market. Furthermore, the bears are anticipating to stretch the stock toward its value area of $30 near its 100-day EMA mark. Moreover, the stock seems overbought from the past couple of days and needs a healthy retracement to continue the bullish sensation.
At the Tuesday market session, the stock was at $34.88 with an intraday drop of 2.62% signifies profit booking. However, the trend is still positive and bulls may claim a pullback again. Analysts are neutral and suggest that the stock may continue to deliver volatile moves. The technicals are conveying a sell signal due to the trendline breakdown.
GBTC on Daily Charts Breached Trendline Support
On the daily charts, the GBTC stock has breached trendline support of $38 and is giving a negative view for the upcoming sessions. However, the stock is at its support zone of $34 near the 50% Fibonacci retracement zone. If stock slips below $34, the selloff may extend to $30 close to the 38.2% Fib zone.
The relative strength index (RSI) curve slipped below the midline and is heading to the oversold region replicating the profit booking in the last sessions. The MACD indicator reveals a bearish crossover and suggests that the stock will suffer correction in the next sessions.
Will the GBTC Stock Succeed In Escaping Trendline Hurdle of $45?
On the weekly charts, the stock has recovered the gains of over 400% and jumped from $13 to $40 sharply, which replicates the buyer accumulation. Moreover, the stock is trading above its key moving averages, which is a positive sign for the long term.
Summary
The GBTC stock faced profit booking and breached its trendline near $38, which created pressure on bulls. Additionally, the stock is at its 50-day EMA support zone and is indicating volatility amid the uptrend. As the stock is at a make-or-break region of 50-day EMA. It may attain a pullback or breach $34 and is replicating uncertainty.
Technical Levels
Support Levels: $32 and $30
Resistance Levels: $37 and $43
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Steefan George is a crypto and blockchain enthusiast, with a remarkable grasp on market and technology. Having a graduate degree in computer science and an MBA in BFSI, he is an excellent technology writer at The Coin Republic. He is passionate about getting a billion of the human population onto Web3. His principle is to write like “explaining to a 6-year old”, so that a layman can learn the potential of, and get benefitted from this revolutionary technology.
