Grayscale Bitcoin Trust Discount
Updated
Grayscale Bitcoin Trust (#GBTC )
Grayscale Bitcoin Trust is the largest closed-end Bitcoin fund in the world
Some great entries all over Finwit and I'm late to the party, are you? Don't panic. Let the chart guide you
You could enter a long term initial position here but I'm waiting for at least a pull back to $14.85 for a 2nd allocation or a shorter term trade
- Above POC with lots of trading vol support sub $14
- 50 day weekly bounce looks promising
- Whilst resistance is overhead at $17.49, you can see
that it is not a heavily traded area thus a breach is
possible hence why getting a long term position
may still be beneficial here
- The OBV is also showing promise breaking
resistance and turning to the upside.
From Jan 2023 to present the GBTC discount moved from -48.62% to -33.45% showing increased interest in the product that is currently providing a -33% discount to the underlying asset, Bitcoin.
The GBTC product has not been in the premium + positive range since February 2021. This means on the secondary market the demand for the limited amount of GBTC shares available is well below par with original GBTC purchasers having sold their shares since Feb 2021 at a loss.
Prior to this in Dec 2020 it was at a 35.8%+ premium to its underlying BTC asset. Purchasing BTC directly then would have saved you 35.8%.
Its amazing how supply and demand can effect a closed end fund.
Grayscale Bitcoin Trust is the largest closed-end Bitcoin fund in the world
Some great entries all over Finwit and I'm late to the party, are you? Don't panic. Let the chart guide you
You could enter a long term initial position here but I'm waiting for at least a pull back to $14.85 for a 2nd allocation or a shorter term trade
- Above POC with lots of trading vol support sub $14
- 50 day weekly bounce looks promising
- Whilst resistance is overhead at $17.49, you can see
that it is not a heavily traded area thus a breach is
possible hence why getting a long term position
may still be beneficial here
- The OBV is also showing promise breaking
resistance and turning to the upside.
From Jan 2023 to present the GBTC discount moved from -48.62% to -33.45% showing increased interest in the product that is currently providing a -33% discount to the underlying asset, Bitcoin.
The GBTC product has not been in the premium + positive range since February 2021. This means on the secondary market the demand for the limited amount of GBTC shares available is well below par with original GBTC purchasers having sold their shares since Feb 2021 at a loss.
Prior to this in Dec 2020 it was at a 35.8%+ premium to its underlying BTC asset. Purchasing BTC directly then would have saved you 35.8%.
Its amazing how supply and demand can effect a closed end fund.
Note
That resistance line.... one Line to rule them all!!!!Note
Press Play .... Make your own mind up on if this was an accurate playA standard and slightly sideways drawn out correction here would not surprise me here
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