Analysis: Grayscale will help Bitcoin break $11,000

As long as Bitcoin holds above $10,250 to $10,500, institutional buying pressure from Grayscale will likely push Bitcoin to re-test $11,000 to $12,000 soon.

Analysis: Grayscale will help Bitcoin break $11,000

There’s no valid reason to sell the world's flagship crypto at the moment, as institutional investors like Grayscale, who now own 2.4% of the world's Bitcoin, continue to put buying pressures on the world's #1 cryptocurrency.

Retail investors are also removing BTCS from major crypto exchanges at record pace to buy up tokens in the defi sector on the basis of earning attractive returns from tokenizing crypto assets and depositing them as collateral in semi-automated blockchain lending programs and protocols to earn high yields.

Bullish signals seem to be emerging at the bellwether crypto market, as most investors trade prefer to hold than speculate on crypto exchanges, as data feed from Coin Metrics, revealed 180-day return volatility for Bitcoin has plummeted 41% so far in September.

Bitcoin price at the time this report is trading below $10,750 with a daily trading volume standing over $19 billion, and its price is down about 1% over the last 24 hours. The world's flagship crypto has been ranging between $10,500 and $10,950 over the past few days as a flood of options have expired. Before its recent price plunge, Bitcoin was trying unsuccessfully to breach the strong resistance level of $11,000, then Bitcoin bulls seemed to run out of gas right at the time the U.S dollar started to regained momentum, causing a bearish sentiment.

As long as Bitcoin holds above $10,250 to $10,500 range, we can probably expect a test of $11,000 to $12,000 soon. Still, $11,000 remains the most critical resistance level for Bitcoin. Once this is conquered, Bitcoin could head towards $11,250, $11,500 price levels and establish new resistance levels there.