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    Bitcoin price stalls as Grayscale approaches SEC for options on spot BTC ETFs

    Updated Mar 1, 2024 01:23

    ●Bitcoin price uptrend has lost steam after a rejection from the supply zone between $62,905 and $68,212.

    ●BTC could drop 5% to $60,000 as part of a healthy correction to give sidelined investors a buying opportunity.

    ●A candlestick close below $60K could instigate and extend BTC fall to $50,000.

    Bitcoin (BTC) price has recorded an impressive rally this week, recording milestones that merited BTC for headlines across crypto news sites and X. However, the rally has lost steam as the king of cryptocurrency now confronts a supply barrier.

    Grayscale approaches SEC for options on spot Bitcoin ETFs

    A Reuters report indicates that Grayscale Investments, a crypto asset manager and the issuer of the GBTC spot BTC exchange-traded fund (ETF), is lobbying the US Securities & Exchange Commission (SEC) to approve options on its spot BTC ETF — GBTC. According to Grayscale, this would open the ETF to a new class of investors.

    Reuters cites a letter from Grayscale CEO Michael Sonnenshein, who described the SEC rejecting options on its Grayscale Bitcoin Trust (GBTC.P), as an unfair discrimination against its shareholders, adding that the regulator has previously approved options on ETFs tied to BTC futures.

    "It is vital to the interests of GBTC and all spot Bitcoin [exchange-traded product] investors to access exchange-listed options on GBTC and other spot Bitcoin ETPs," wrote Sonnenshein, adding that spot BTC ETF options would enable price discovery in the new ETFs’ shares.

    In principle, while the ETFs have opened cryptocurrency to more investors, options would allow holders to reserve the right to buy or sell at a predetermined price by a set date. Nevertheless, it is worth noting that considering BTC is deemed a commodity, the US Commodities Futures Trading Commission (CFTC) would also have to weigh in for an approval of spot BTC ETF options.

    Bitcoin price outlook as BTC confronts a supply barrier

    Bitcoin price tagged the supply zone between $62,905 and $68,212 on Wednesday but was rejected. The level to beat remains the mean threshold, $65,664, marking the midline of the order block. A break and close above it on the daily time frame would confirm the continuation of the trend.

    With the supply zone holding as a resistance, the ongoing rejection could see Bitcoin price retest the $60,000 psychological level, giving sidelined and late investors an entry point. This would constitute a 5% slip below current levels.

    Nevertheless, the thesis remains bullish as the market continues to favor the upside. This is seen with the northbound inclination of the Relative Strength Index (RSI), showing that momentum is still rising.

    If Bitcoin price overcomes the $65,664 midline, BTC could retake its $69,000 all-time high for the first time since 2021.

    BTC/USDT 1-day chart, Source: TradingView.

    On the other hand, if selling pressure continues, Bitcoin price could revisit the $60,000 threshold, or worse, extend a leg down to $50,000, where traders could buy the dip.

    A daily candlestick close below $40,000 would invalidate the bullish thesis by producing a lower low.

    * The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

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