- Grayscale buys more than 8,000 Bitcoin after the price dropped from $38,000 to $33,400.
- BlackRock prepares to allow clients to buy cash-settled Bitcoin futures.
- BTC/USD consolidates within a symmetrical triangle ahead of a breakout to $46,000 or a breakdown to $25,000.
Bitcoin saw another unexpected dip after a failed attempt to overcome the resistance at $38,000. As the largest cryptocurrency by market capitalization explored the levels downstream to $33,400 (on Coinbase), Grayscale Investments was keen to buy into another dip. Simultaneously, BlackRock Inc. is preparing to invest in Bitcoin futures, taking the form of an eligible investment to two funds.
Bitcoin consolidates amid attention from the world's largest money managers
Grayscale is said to be singlehandedly pumping Bitcoin following its buying spree. The largest digital asset management firm has become Bitcoin's largest investor amid the rally from October 2020.
In the past 24 hours, Grayscale sunk another $307 million behind the flagship cryptocurrency. The investment saw the asset manager take advantage of the dip to add to its coffers over 8,000 BTC. The number of coins bought by Grayscale is 12 times the daily supply (mined) of Bitcoin, suggesting that eventually, the tailwind will surge enough to catapult BTC out the consolidation.
While Grayscale dives headfast into Bitcoin, BlackRock, the biggest money manager, is ready to add Bitcoin futures. Its updated prospectuses highlighted a pair of funds with cash-settled Bitcoin futures as one of the assets clients were allowed to purchase.
According to Bloomberg, "the filings for BlackRock Strategic Income Opportunities and BlackRock Global Allocation Fund Inc. appeared on the U.S. Securities and Exchange Commission website Wednesday." It is worth mentioning that cash-settled futures are paid in cash and not the underlying asset.
The largest money manager handles over $8.7 trillion. Its gesture toward Bitcoin is very positive because it paves the way for other institutions to consider BTC as part of their portfolio. Moreover, it is a remarkable milestone for BlackRock because it has said its clients weren't interested in owning crypto for a long time. The General Partner at Castle Island Ventures, Nic Carter, believes Bitcoin is ready for the institutions' attention:
It's certainly more evidence for the institutionalization thesis that's really been the theme of this bull market.
At the time of writing, Bitcoin is exchanging hands at $34,500 following the dip from $38,000. The 4-hour chart shows that the overhead pressure above Bitcoin surged after the price hit levels under the 50 Simple Moving Average and the 100 SMA.
For now, Bitcoin is in consolidation ahead of breakout levels slightly above $46,000 or a breakdown, retesting support around $25,000 based on the formation of a symmetrical triangle.
The chart pattern is created by converging two trendlines, linking a series of sequential peaks and troughs. The trendlines are usually expected to cross at an approximately equal slope. The formation highlights a period of consolidation ahead of either a breakout or a breakdown.
Note that a breakdown occurs from the ascending trendline and signifies the beginning of a downtrend. Consequently, a breakout materializes at the descending trendline and signifies the start of an uptrend. Symmetrical patterns tend to have clear-cut price targets for the breakout or breakdown, mainly measured from the highest point to the pattern's lowest point, as observed on the chart.
BTC/USD 4-hour chart
In light of the consolidation, Bitcoin is most likely to drop further in search of a formidable support area before a reversal to levels above $40,000 comes into the picture. However, investors should be aware that dips are common occurrences in bull markets and offer opportunities to increase positions or enter the market in the event one missed the rally.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Prisma price tanks 25% after nearly $9 million exploit
Prisma Finance (PRISMA) is being exploited, and the attacker has so far pulled $9 million in Ethereum from the borrowing protocol. Prisma asked vault owners to take the necessary steps to protect funds from the ongoing attack in an official tweet on X.
Meme coins gain traction after SEC’s partial win in Coinbase lawsuit: DOGE, SHIB, BRETT, POPCAT, BODEN
US SEC pocketed a partial win in its lawsuit against Coinbase, ushering a correction in crypto prices on Thursday. Despite the broad pullback, prices of meme coins like Dogecoin, Shiba Inu and Solana-based BRETT, POPCAT and BODEN increased.
Ondo moves $95 million worth of OUSG assets to BUIDL as tokenized fund attracts $245 million since debut
Ondo Finance (ONDO) announced on Wednesday that it's shifting about $95 million worth of its OUSG's underlying assets to the BlackRock USD Institutional Digital Liquidity Fund (BUIDL).
XRP price stuck below $0.65 resistance, Ripple lawsuit could suffer from Coinbase defeat
XRP price falls slightly to $0.61 on Thursday after its landmark programmatic sales ruling in July, which gave Ripple a partial victory against the US SEC, failed to reverberate in a similar legal battle between the regulator and crypto exchange Coinbase.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.