Key Points
- Bitcoin’s large-scale sell-off may decrease as holders opt to borrow against BTC rather than sell.
- JPMorgan Chase’s use of crypto ETFs as collateral may support this trend.
Bitcoin Holders May Borrow Rather Than Sell
The large-scale sell-off of Bitcoin (BTC) may slow down as the cryptocurrency’s value increases. Bitwise CEO Hunter Horsley suggests that holders will choose to borrow against their BTC stash instead of selling it once it surpasses $150K.
JPMorgan Chase, one of the largest wirehouses, has started using crypto ETFs as collateral. This move supports Horsley’s claim and if the trend continues, BTC’s value could skyrocket even further.
Bitcoin’s Short-Term Outlook
Despite recent losses, Bitcoin briefly retested the $110K mark earlier this week. However, Glassnode reports a spike in selling pressure from long-term holders (LTH), with daily offloads reaching $930 million. Despite this, the selling pressure remains modest compared to previous peaks.
Glassnode suggests that the current price levels are unlikely to trigger a broader-scale distribution. The analytics firm identifies $115.4K and $97.6K as near-term resistance and support levels, respectively.
A price dip below $97.6K could potentially trigger a panic sell-off by recent buyers, negatively affecting the current bullish trend. However, Peter Brandt suggests a possible 75% drop in BTC’s value, from $109K to $27K, based on a double top pattern from 2021.
However, this dramatic drop seems unlikely, considering past bear markets have seen BTC’s value stabilize around the 200-weekly moving average, which currently stands at $48K.
