BTC dips as key support zone at $40k comes under pressure

BTC dips as key support zone at $40k comes under pressure


Bitcoin price is currently near $40,480 after falling 3% in the past 24 hours.
BTC faces pressure as Grayscale sells more Bitcoin amid GBTC outflows.

 Bitcoin (BTC) price saw another sell-off bout on Monday as the crypto fell more than 3% to hover just above the key $40,400 level.

With today’s BTC decline, the global crypto market cap has also dipped by about 4% in the past 24 hours to $1.65 trillion. The outlook is one of widespread altcoin weakness – Ether prices have dropped below $2,400, Solana under $87 and XRP towards $0.52.

Injective, Near Protocol and Avalanche are some of the biggest losers on the day with near double-digit declines in the past 24 hours.

Bitcoin price dips amid Grayscale BTC dump

The flagship cryptocurrency’s struggles came as GBTC issuer Grayscale Investments transferred more of its BTC holdings to Coinbase Prime. Prices fell sharply last week amid the growing GBTC outflows.

As on-chain data from blockchain security and market intelligence platform Arkham Intelligence showed, Grayscale moved another 15,308 BTC as trading markets opened on Monday. The total amount of funds transferred has increased to over 63,991 as of January 22, 2024.

In total, the digital asset manager has deposited BTC worth over $2.68 billion to Coinbase Prime since its GBTC exchange-traded fund began trading on January 11.

Arkham data shows Grayscale still holds 549,116 BTC worth over $22.3 billion.

BTC price outlook

If GBTC related sell-off pressure continues to mount, Bitcoin price could swing below the critical support level. Chances that bears could target lower areas are likely to increase should fresh panic selling hit the market.

However, should bulls flip higher on a strong bounce from the current levels, Bitcoin price could eye the 43k hurdle. The recent highs above $49k could be the main resistance zone in case of an strengthened upward continuation.

BTC traded at $40,480 on Monday at 11:30 am ET.





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