We know why Bitcoin is not going up – the resistance is just too strong and we see rejection after rejection. However, now we might also know why Bitcoin doesn’t go down: Grayscale is buying.
Just recently, Grayscale published their Q2 2020 numbers and revealed that they bought Bitcoin worth $750 Million during that time. This means that they purchased Bitcoin worth around $7.3 Million per day. That’s a lot of buying and could be what keeps Bitcoin afloat. It’s simple logic; If Grayscale pumps over 7 Million dollars into the market every day and Bitcoin doesn’t move, someone else is selling the same amount. This raises an important question: What happens if Grayscale stops buying?
Apple, Tesla, the S&P500… While the traditional markets seem to recover (or even pump) well, only the crypto market seems to be too weak to make another push to the upside – not even with Grayscale’s money. That’s not a good sign.
If we see a massive drop, Bitcoin’s large inverted head and shoulders pattern on the daily could play out and take Bitcoin to around 6,000 – 7,000 dollars. While that doesn’t sound bullish, an inverted head & shoulders pattern is a bullish pattern and would see Bitcoin go back up to around 10,000 dollars upon completing the right shoulder – and that’s just before a potential bullish breakout.
However, I don’t see a reason why Grayscale would stop buying now. But if they do, Bitcoin has even more reason to see a major dump.