Bitcoin Price Prediction: Bernstein Says Mining Stocks Underperformance A ”Buying Opportunity” As This BTC Cloud Mining Presale Rockets Towards $9 Million

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The Bitcoin price is up by a fraction to trade for $42,842 as of 1:15 a.m. EST time, with trading volume falling 15%.

BTC remains outside the protection of the ascending parallel channel, which remains the governing technical formation since the crypto market turned bullish in October.

The fall from grace came during the January 12 crash, instigated by news of Grayscale Bitcoin Trust (GBTC) dumping. This meant GBTC holders were redeeming their holdings, and selling BTC on the market.

As the Bitcoin price tries to return to the fold of the pattern, it faces stiff opposition as GBTC redemptions continue. On Wednesday, Grayscale Bitcoin Trust moved BTC worth $200.61 million to Coinbase Prime, less than a day after moving $370 million BTC to the same platform.

According to blockchain security firm Lookonchain, Grayscale Bitcoin Trust wallets moved 18,638 BTC tokens to Coinbase Prime worth around $795 million.  The security firm also confirms that since January 11, when spot BTC ETFs started trading, Grayscale has deposited up to 31,638 BTC worth $1.35 billion to Coinbase Prime.

With this track record, renowned economist Peter Schiff attributes the difficulty seen in the Bitcoin price trying to reclaim back into the bullish chart pattern to overhead pressure from GBTC redemptions. “People expected the new ETFs to cause a lot more buying,” he said. “But it is being offset by all the selling. Just pointing out where the selling is coming from to offset that buying.”

Broker Bernstein Sees A ‘Buying Opportunity’ For Bitcoin Price As BTC Mining Stocks Underperform

Meanwhile, Bitcoin mining stocks have underperformed over the past few weeks, coming on the back of spot BTC ETF approvals. This is because of citing of lower investor appetite to use them as a proxy, and a weaker BTC price, resulting in further underperformance.

According to the broker, however, the weakness provides investors with an opportunity to buy into mining stocks while they are cheaper.

Bitcoin Price Prognosis As BTC Clings To a Straw Of Grass Below The Channel

With the Relative Strength Index (RSI) appearing subdued, moving horizontally while still below the 50 level, the Bitcoin price clings to a grass straw, as the odds favor the downside. It faces immediate resistance from the 50-day Simple Moving Average (SMA) at $42,987. This overhead pressure is worsened by the Moving Average Convergence Divergence (MACD), which remains southbound since crossing below the signal line (orange band) on January 12. This reinforces the assumption that the odds still favor the downside.

Increased selling pressure could delay the effort by the Bitcoin price to restore into the fold of the ascending channel. Cognizant that markets tend not to wait that long, BTC could extend the fall to test the $40,726 support, or lower, extending to test the 100-day SMA at $38,543.

In the dire case, the Bitcoin price could extend the fall to the critical support at $37,800, below which BTC could fall to a cliff, going as low as the $30,000 psychological level. A decisive candlestick close below this level would invalidate the prevailing bullish outlook.

TradingView: BTC/USDT 1-day chart

Converse Case

On the other hand, if sidelined investors or later traders seize the opportunity to buy the dip, the Bitcoin price could reclaim the support offered by the lower boundary of the channel. This could see the $43,750 level flip back into support, providing the jumping-off point for BTC to target the $48,000 psychological level.

In a highly bullish case, the Bitcoin price could extend the climb, going as high as the $50,000 psychological level, last tested in December 2021.

Bitcoin Price Outlook From An On-chain Perspective

The Market Value to Realized Value (MVRV) ratio, an indicator used to assess the average profit/loss of investors who purchase an asset over a particular timeframe, shows that 2.18% is the average loss of investors who bought BTC in the past month. Some of these investors could sell BTC once they break even.

This bearish outlook is reinforced by the falling daily active addresses, meaning there is reducing number of crowd interactions or speculation for wBTC, particularly among unique or fresh addresses.

bItcoin Santiment

BTC Santiment: Daily active addresses, MVRV ratio

Elsewhere, on-chain aggregator IntoTheBlock’s Global In/Out of the Money (GIOM) metric shows that the next formidable obstacle for the Bitcoin price lies between the $43,922 and $67,413 where 6.29 million addresses hold 2.32 million BTC bought at an average price of $51,560.

BTC GIOM

BTC GIOM

Any efforts to push the Bitcoin price past this order block would be countered by selling pressure from that many addresses.

That notwithstanding, the BTC community now has its eyes peeled on the halving event slated for April, exactly 110 days away. The event is expected to kickstart the next bull cycle.

Ahead of this event, forward-looking investors are already growing their BTC portfolios through the Bitcoin Minetrix ecosystem’s innovative cloud-mining technique.

Promising Alternative To Bitcoin

Bitcoin Minetrix provides you with the best alternative to Bitcoin, BTCMTX. The token, which powers its ecosystem, is available for purchase at $0.0129, which will stand for the next three days before increasing.

Presale sales have reached upwards of $8.728 million, with the $9.509 target objective now in sight. With the tokens selling fast, the sales could rocket to $9 million by the end of the week. Do not miss out!

For investors that already hold BTCMTX, you do not have to wait for the presale to end. The same applies for anyone looking to buy BTCMTX. Stake your holdings for mining credits and thereafter redeem or burn these credits for mining hash power.

This is the mechanism behind the project’s cloud-mining approach, decentralizing and tokenizing the entire process for maximum user convenience.

Visit Bitcoin Minetrix website to buy BTCMTX in the presale here.

Also Read:

New Crypto Mining Platform – Bitcoin Minetrix

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