Bullish view
- Buy the BTC/USD pair and set a take-profit at 68,750.
- Add a stop-loss at 62,500.
- Timeline: 1-2 days.
Bearish view
- Set a sell-stop at 65,000 and a take-profit at 62,000.
- Add a stop-loss at 68,000.
The BTC/USD pair stabilized during the weekend after it crashed to a monthly low of 60,755 last week. Bitcoin was trading at 66,000 on Monday morning as traders waited for more data on the Grayscale Bitcoin Trust (GBTC), the biggest ETF in the industry.
GBTC outflows continue
Bitcoin has been in a strong bearish trend in the past few weeks as concerns about the GBTC ETFs continue. The fund has been shedding assets in all weeks after the SEC approved its conversion into an ETF.
GBTC has shed over $13.1 billion in assets as the number of coins in the custody plunged. It shed assets worth over $1.6 billion last week after losing $1.4 billion in the previous week.
In contrast, other Bitcoin ETFs are seeing strong inflows. The iShares Bitcoin Trust has added thousands of coins now valued at over $15 billion. The same is true with other ETFs by companies like Fidelity and Ark Invest, which have seen strong inflows.
Most investors are dumping their GBTC assets because of its high fees. The fund charges clients an expense ratio of 1.50%, which is much higher than the other funds that charge less than 0.30%. The difference in fees is substantial since a $10,000 investment costs about $150 per year.
The ProShares Bitcoin Strategy ETF (BITO), which was the first fund in the industry, has also shed assets in the past two straight weeks.
Therefore, there is a likelihood that Bitcoin will resume the uptrend as the rotation from GBTC to other ETFs continues. It will also do well ahead of the upcoming Bitcoin halving event, which will reduce block rewards. In most cases, Bitcoin tends to rally ahead of this halving event.
BTC/USD technical analysis
The BTC/USD pair has been under pressure in the past few weeks. It retreated from the YTD high of 73,770 to 60,755. The pair has now bounced back and moved to the important resistance point at 66,000.
It has also bounced back above the 50-period Arnaud Legoux Moving Average (ALMA). Also, it has moved above the upper side of the descending channel shown in green. It has recovered above the 23.6% Fibonacci Retracement level and formed a small inverse head and shoulders.
Therefore, the pair will likely continue rising as buyers target the Woodie pivot point at 68,760. The stop-loss for this trade will be at 62,000.
Ready to trade our free trading signals? We’ve made a list of the best Forex crypto brokers worth trading with.