Bitcoin: A re-test of $64k is possible if this catalyst shows up

Is it finally time for this major factor to rear its head and guide Bitcoin?

Bitcoin’s price may drop or rise again in the short term. Even so, a gradual ascendency above the aforementioned range is a near-confirmed scenario for many.

In fact, that’s not all, with many analysts going beyond more immediate $64k projections to speculate that the world’s largest cryptocurrency may go as high as $100,000 by the end of the year.

However, that is an issue for another time. $100k projections, whether accurate or not, are a long way away.

Instead, what’s immediate right now is whether the $64,000-level is within BTC’s reach or not.

Now, despite the crypto breaching new levels recently, it is still roughly 30% away from its ATH. What’s more, its trading volumes have been decreasing, with the same much lower than the levels in April-May.

Ergo, let us analyze a speculative situation.

What if one of the catalysts from the previous bull run triggers another rally?

On 21 February 2021, Grayscale reached peak Bitcoin holdings of 655.47k. Since then, however, its accumulation activity has gone down. In fact, its holdings were down to ~649k.

Over the same time, GBTC premiums have started to deplete on the charts, touching a low of -21% on 15 May. Now, while premiums have continued to remain negative, this might change over the next few months.

Between March and August, several GBTC unlocks were scheduled, with close to 30,000 BTCs undergoing unlock between 21-23 June.

GBTC unlocks are usually suggestive of investors who are taking their profits after completing the initial 6-month lock-up period.

However, right now, there are no more additional unlocks until after September.

Now, this could lead to a domino effect, one which might see BTC go up based on institutional momentum.

It is important to note that Grayscale hasn’t announced any addition to its BTC holdings. Even so, speculations can be drawn that it could be an ideal time to renew demand for its GBTC product.

With premiums on the mend of late, there is likely going to be more of an incline as demand slowly starts to inch its way back up.

Bitcoin’s price is now well above its support level of $42,000. This allows the asset to be above the bearish realm.

If Grayscale undergoes another accumulation stint, GBTC shares will eat up demand once more. This will fuel a rise in premiums.

Back in November 2020, aggressive interest from the institutional side led to retail caving in and fueling an enormous rally.

Although the market structure is very different right now, Grayscale’s renewed interest might just be what Bitcoin needs to touch $64,000.