Is the Grayscale Bitcoin Trust (GBTC) stock a good buy now?

The Grayscale Bitcoin Trust (GBTC) stock price has moved sideways in the past few days as Bitcoin remained stuck at $30,000. GBTC was trading at $20, the highest level since June last year. It has jumped by more than 168% from the lowest level in December.

Bitcoin consolidation continues

The Grayscale Bitcoin Trust is the biggest fund in the cryptocurrency industry. It has over $18.9 billion of assets under management (AUM). Over the years, the fund has jumped by more than 19,200% since its inception.

Grayscale Bitcoin Trust stores its assets in an offline cold wallet with Coinbase Custody Trust. Most companies that have filed for Bitcoin ETFs have also selected Coinbase as the custodian of the funds.

GBTC creators have filed to convert the GBTC fund into an exchange-traded fund (ETF). Indeed, the company has sued the Securities and Exchange Commission (SEC) in a case that could change the industry. 

A ruling in favor of the company will open the possibility for other companies like Blackrock and Invesco to launch their spot ETFs. 

GBTC is widely known for its massive discount to its assets, The market price per share stands at $19.81 compared to its holdings per share of $22. This discount has been narrowing in the past few weeks.

The next key important catalyst for the GBTC stock price will be Bitcoin’s price action. Bitcoin has remained stuck slightly above the key support level at $30,000. Therefore, if Bitcoin rebounds, there is a likelihood that the Grayscale Bitcoin Trust will continue rising as well.

GBTC stock price forecast

The daily chart shows that the GBTC share price has been in a strong bullish trend in the past few days. It has managed to move above the important resistance point at $18.53, the highest level on April 10th. 

The Grayscale Bitcoin Trust stock price has moved above the 50-day and 100-day exponential moving averages (EMA). Further, the Relative Strength Index (RSI) has moved slightly below the overbought level to 69. GBTC’s volume has moved downwards.

Therefore, there is a likelihood that the GBTC price will continue rising as buyers target the next key resistance level at $25. A drop below the support at $18.53 will invalidate the bullish view.