John Bollinger Signals Potential Bitcoin Reversal
John Bollinger, the legendary creator of the Bollinger Bands indicator, has made a significant statement on social media suggesting that the selling pressure on Bitcoin (BTC) may soon end, hinting at a potential reversal from the recent downtrend. This comes as Bitcoin showed an impressive rally on January 26, surpassing the $42,000 level, exciting crypto investors despite a slight pullback to $41,429.
While Bitcoin has not maintained its peak, trading at $41,858 in the last 24 hours indicates a 1.5% increase, signaling a possible continuation of the recovery. Bollinger’s analysis of the current Bitcoin situation points to an imminent easing of the strong selling pressure that has hampered the cryptocurrency’s rise.
Continued Bitcoin Outflows from Grayscale’s GBTC
The approval of 11 spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) on January 10 led to a surge in Bitcoin’s price to $49,000. However, the initial excitement was short-lived as a sharp decline followed, largely triggered by significant outflows from Grayscale Investment’s GBTC after its conversion to a spot ETF.
Investors in GBTC, facing high fund management fees compared to alternatives, began selling their shares to transition to spot Bitcoin ETFs issued by BlackRock, Fidelity, VanEck, Ark Invest, and other Wall Street hedge funds. The end of the mandatory lock-up period during the spot ETF approval caused a wave of exits from GBTC, with Grayscale Investment itself also selling substantial amounts of Bitcoin.