Bitcoin Price Outlook: Will BTC foray higher as BlackRock BTC ETF nicks $10 Billion AUM?
- Bitcoin price remains within the three-day supply zone between $59,717 and $67,525.
- How BTC manages the $63,755 will determine the next directional bias, with technical statutes stipulating it is the level to beat.
- Capital inflows around spot ETFs remain the driving theme, with Bitwise CIO and Galaxy CEO citing the “ BTC price discovery phase.
Bitcoin (BTC) price is confronting a formidable resistance zone, a make-or-break moment for the king of cryptocurrency depending on how it manages the immediate resistance. Meanwhile, BlackRock continues to set the bar higher for its peers in the spot BTC ETF campaign.
BlackRock Bitcoin ETF nicks $10 Billion AUM
As the spot Bitcoin exchange-traded funds (ETF) narrative continues to drive the cryptocurrency market. On-chain market intelligence firm Glassnode reports that “total balance held by US ETFs has soared past 760,000 BTC, with GBTC making up the lions share, followed by Blackrock.”
Our ETF Spot metric shows that the total balance held by US ETFs has soared past 760,000 BTC, with GBTC making up the lions share, followed by Blackrock. https://t.co/m069weLhRr pic.twitter.com/fCx3H1AY3W
— glassnode (@glassnode) March 1, 2024
With the nine new Bitcoin ETFs (all viable) having up to $21.17 billion in total assets under management, data shows that BlackRock’s IBIT has become the fastest-ever Bitcoin ETF to hit $10 billion in assets. Notably, this is the fastest an ETF has hit $10 billion in assets under management (AUM), at 37 trading days since the investment product went live on January 11. Only about 4% of all ETFs have reached the $10 billion mark.
$IBIT the newest member of the $10 Billion Club, fastest ever to get there.. Only 152 ETFs in this club (out of 3,400) incl $GBTC. First $10b so touch bc so much has to come from flows (in $IBITs case 78% of aum is flows). Second $10b easier bc mkt appreciation bigger variable pic.twitter.com/FwysL4GSGk
— Eric Balchunas (@EricBalchunas) March 1, 2024
The numbers make for an exciting time in crypto adoption, with an impressive influx of assets into Bitcoin ETFs. In an appearance with CNBC, Bitwise CIO Matt Hougan, who anticipates an even greater wave of inflows for BTC ETFs from institutional players, joined Galaxy CEO Mike Novogratz in remarking that Bitcoin is in a price discovery phase.
Nevertheless, apart from the Bitcoin ETFs, there are other catalysts driving up cryptocurrency prices, said Nick Tomaino, founder of cryptocurrency investment firm 1confirmation. Projects like Farcaster, Worpcast, Polymarket, Worldcoin, and Bridge are helping to bring new users to the space, he said.
Bitcoin price outlook as capital inflows into BTC ETF drive markets
Bitcoin price remains within the $59,717 and $67,525 supply barrier on the three-day timeframe, with the abounding trend still northbound as supported by multiple technical indicators. Despite the Relative Strength Index (RSI) showing BTC is massively overbought at 81, this momentum indicator remains inclined north, suggesting rising buying pressure.
If buyer momentum steers Bitcoin price to close above the $63,755 mean threshold in the three-day timeframe, it could pave the way for extended gains. For one, BTC could break above the supply zone’s upper boundary at $67,525, flipping it into a bullish breaker before springboarding above it to reclaim the $69,000 peak.
The presence of the bulls in the market is evident, with large volumes of green histogram bars in positive territory for both the Moving Average Convergence Divergence (MACD) and the Awesome Oscillator (AO).
Nevertheless, amid ongoing FOMO in the market, experts advise caution as there has been a significant spike in profit-taking by Bitcoin whales.
There has been a significant spike in profit-taking by #Bitcoin whales!
— Ali (@ali_charts) February 29, 2024
Over the past three days, they've sold off more than 80,000 $BTC, equating to approximately $4.8 billion. Investors and traders are advised to proceed with caution! pic.twitter.com/M44jAIwutw
BTC/USDT 3-day chart
On-chain metrics supporting bullish outlook for Bitcoin price
Data according to on-chain aggregator IntoTheBlock’s In/Out of The Money Around Price (IOMAP) shows that Bitcoin price holds above a massive support wall. This is because with one million addresses buying over 671,000 BTC within the price range of $60,402 to $62,222 at an average price of $61,355.
Analysts ascribe this to strong investor confidence, making the zone a crucial level of support for Bitcoin price, potentially cushioning against further drops.
BTC IOMAP
Conversely, if profit takers have their way and the supply zone holds as a resistance, BTC price could face a rejection, potentially losing the $60,000 psychological support. In a dire case, the slump could extend to the $50,000 threshold, giving sidelined and late investors another entry point to buy the dip.
Notably, the RSI position above 70 shows BTC is massively overbought, increasing the risk of a correction. Also, the Spent Output Profit Ratio (SOPR) above 1 (at 3.30) shows that the owners of the spent outputs are in profit at the time of the transaction, hence cashing in on the gains amid enhanced profit booking appetite.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
