On both Friday and Monday, two significant purchases, totaling almost a billion dollars each, were made in U.S. Spot Bitcoin ETFs. These transactions played a role in pushing the price of Bitcoin back above $100,000.
Heavy buying from the U.S. Spot Bitcoin ETFs
Despite indications from charts suggesting Bitcoin is overbought at the moment, robust institutional investment is preventing any significant price drop. Currently hovering around $202,000 on Tuesday, continued heavy buying throughout this week could potentially lead to a new record high.
On Monday, there was a significant increase in the purchase of Bitcoin ETFs in the U.S., with a total of approximately 9.95 Bitcoins being added, equivalent to nearly $1 billion. This daily inflow ranks as one of the top five largest on record, surpassing the purchase made on Friday by a small margin (approximately 9,360 Bitcoins).
In contrast to the previous two transactions, it was Blackrock’s IBIT fund that didn’t buy the majority of the Bitcoin this time around. Instead, Fidelity’s FBTC fund emerged as the largest buyer, purchasing 3,680 BTC on Friday and an additional 3,760 BTC on Monday.
MicroStrategy announces a 1,070 BTC purchase
As a researcher, I’m sharing an update on MicroStrategy’s latest move: They announced another Bitcoin purchase on Monday, totaling 1,070 BTC, which equates to approximately $101 million. While their recent purchases have slowed down over the past couple of weeks, it’s important to note that they have plans to invest at least $42 billion in Bitcoin over the next three years. This indicates a significant demand for Bitcoin from MicroStrategy, suggesting more major acquisitions are on the horizon.
$BTC overbought. How deep will the dip be?
Even though there have been substantial Bitcoin purchases lately, its current price appears to be inflated, suggesting a potential downturn may occur next. On the short-term chart, Bitcoin’s price seems to be reversing direction and encountering the first level of support based on the 0.236 Fibonacci, implying a possible period of decreasing prices ahead.
If a rebound happens here, or possibly at the 0.382 Fibonacci level, it would suggest a very bullish trend, but a more substantial and deeper correction might be more beneficial for future price movements. Potential rebounds could occur at the 0.5 Fibonacci around $100,000 or the 0.618 Fibonacci near $96,300, which would make ideal spots to watch for a bounce in the market.
Monthly price targets
Stepping back to view things on a monthly basis, we get a clearer overall perspective. At present, the price is approaching the significant 1.618 Fibonacci level that spans the entire bull market. Potential future target prices lie beyond this point.
Glancing at the following part of the chart, the Stochastic RSI lines slope upward, indicating a positive or bullish trend.
At the base of the graph, the Relative Strength Index (RSI) is displaying an appealing rebound from the downward trendline. Yet, for the indicator line to significantly weaken the intense bearish divergence, it must ascend to the 91.70 mark. If it fails to reach this level, a bear market appears likely to start.
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2025-01-07 14:12