Cryptocurrency trading firm QCP Capital says Bitcoin will not move after the massive day of unlocking 16,000 BTC from Grayscale.

in the Update In Wednesday’s latest market release, analysts rejected the notion that Grayscale Bitcoin Trust (GBTC) will cause price volatility for BTC in the coming weeks.

KYno “significant impact” from GBTC

As reported by Bitcoin Magazine, GBTC will issue or “unlock” large amounts of BTC after a six-month lock-up period.

Despite being a recurring event, the size of the unlocks this month has raised concerns about increasing market volatility, which is hindering any potential rebound.

For example, on July 18, the largest unlock date will make 16,240 BTC “free,” which is currently $ 530 million.

However, there is little cause for concern for QCP. The company explains:

“Pending Activations are for institutional holders who signed up directly with GBTC 6 months ago, and this round includes all new positions for Q1 2021, mainly the latest ARK promissory note”.

“We assume that these activations will not have any significant effects on the overall market outside of GBTC. Most of the major registered institutional slots were previously activated and they have stopped selling at the current discounted price. “

In addition, the next major GBTC unlock event will take place in mid-August, reducing the potential for further selling pressure.

Unlock event diagram Conditions | source: Bybt

ability BTC sale “bigger”

What is causing QCP headaches, however, is the possibility of a major Bitcoin sell-off later in the year.

Following historical precedents, the end of the fourth quarter could see the classic blow-off top scenario after a rally and a rally from the current level.

Analysts quoted 2018 as a bear market high of $ 3,100 – 84% below its all-time high of $ 20,000 in the past 12 months.

“At the moment our trading plan BTC Analog 2018 follows: From here until August you can expect a gloomy trading environment (volume short), followed by a rally thanks to EIP Mainnet rollout -1559 (spot long, long calls) and then a larger sell-off of wave 5 in the fourth quarter after the Fed tightening trend (spot selling, buy-down, risk reversal) ”.

How high BTC / USD will rise in the meantime is controversial. Since the most bullish test model is stock-to-flow, the creator of PlanB said the $ 135,000 price in December was a “worst-case scenario”.

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According to Cointelegraph

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