Bitcoin moves above $27,000 but BTC investors are fearful in the long term

During last weekend. The world's largest cryptocurrency Bitcoin (BTC) recorded a strong upward movement amid whale accumulation. As of press time. Bitcoin is trading 1.29% higher at $27,241 and has a market cap of $530 billion.

The recent break above $27,000 opened the door for BTC price to advance to $27,800. According to technical charts. However, amid ongoing concerns about a significant price correction. Long-term Bitcoin holders have shown fear.

Key Price Levels to Watch for Bitcoin Bitcoin is currently trading above $27,000 and is positioned above the 100 hourly simple moving average. However, it is facing major resistance around the $27,300 level.

Subsequent crucial resistance can be found near the $27,500 area or the 61.8% Fibonacci retracement level. Which is calculated from the downward movement between the swing high of $28,285 and the swing low of $26,550. A decisive break above the resistance levels at $27,500 and $27,650 could pave the way for a larger upside.

If Bitcoin fails to make a significant recovery above the $27,500 resistance level, a potential decline could occur. Initial support on the downside can be identified around the $27,000 level and close to the trend line. The next important support level is near $26,900. Along with the 100 hourly simple moving average.

GBTC discount drops to 16% Grayscale and the SEC will likely begin a conversation this week about converting the GBTC product into a spot Bitcoin ETF. This happened because the SEC decided not to appeal the court's ruling in favor of Grayscale. Interestingly, this also increased the odds of a Bitcoin spot ETF being approved in the US to 90% by January 2024.

Amid all the developments, GBTC stock's discount to Bitcoin's spot price has fallen below 16%. The discount gap reached 30% earlier this year.

According to recent data from YCharts, Grayscale Bitcoin Trust (GBTC)'s discount to Bitcoin's net asset value (NAV) has fallen to 15.87% as of October 13.

This tightening of the GBTC discount began when BlackRock and several other financial institutions filed for Bitcoin exchange-traded funds in mid-June. The discount declined steadily from 44% on June 15 to 26.7% by July 5, and has continued to narrow since then.