BlackRock Buys More Bitcoin Worth $34.4 Million, Is a Breakout Coming

Key Insights:

• BlackRock just bought $34.4M in Bitcoin during consolidation.
• Bitcoin price forms the cup and handle pattern, confirms retest, and eyes the next breakout.
• Institutional demand and liquidity signals support strong bullish momentum ahead.

BlackRock has acquired Bitcoin (BTC) valued at $34.4 million to be included in its balance sheet. This purchase is accompanied by a remarkable surge in technical momentum and on-chain liquidity of Bitcoin. It gives a number of markets the possibility to be held in discussions about a potential breakout.

The new allocation further boosts the constant interest that BlackRock has shown the crypto industry by also making recent buoyant moves in Ethereum through its iShares Ethereum Trust (ETHA).

Although there has been some decline in Ethereum in the last two weeks, it is clear that Bitcoin has been the foundation of BlackRock’s crypto strategy. That’s particularly true through its IBIT spot ETF.

This ETF has thus far been regarded as one of the prototypical products available to traditional investors, who are taking an interest in cryptocurrencies.

Bitcoin Traded Above $118,000 as Technical Patterns Aligned

Bitcoin price stood at $118,019.87 as of press time, with a day-to-day gain of barely 0.02% based on CoinMarketCap data. Intra-day trading exhibited a slight correction of up to $117,000 during the evening in the U.S. trading activity, followed by a rebound by the Asian and European markets.

After reaching a price of over $118.5K, BTC price briefly broke the local high of more than a week. It then went back down a bit, which indicated a cautious degree of optimism.

Technically speaking, in a wider view, Bitcoin has shown over the last several years what is now considered a textbook example of a Cup and Handle pattern. It is a bullish formation that has historically indicated a breakout has occurred following a consolidation phase.

The cup is created during a long-term bottoming process and is followed by the shorter handle that acts as a shakeout before breakout.

As the chart provided by market analyst Merlijn The Trader shows, Bitcoin has already passed the retest stage. It now attempts to go back to the neckline after first breakout, and is now gathering forces in order to make another bullish leg.

This arrangement has additional credibility since the recent allocation of BlackRock occurred at a time when they had confidence levels on the current price levels.

BlackRock is Going Big on Crypto

Despite BlackRock considerably exposing itself to Ethereum, buying BTC remains the most important crypto ETF asset. The company has bought more than 1.2 billion ETH in the last week in the form of an ETHA.

The share of assets under management (AUM) in crypto ETFs, which Ethereum ETFs now comprise about 13% of. This is an increase of up to 5% in the last two months alone.

Remarkably, the recent approval of in-kind redemptions by both Bitcoin and Ethereum ETFs by the U.S SEC eliminates the sell pressure on redemptions. It will also allow more stability in the market.

Such a regulatory change has the potential to attract more institutions to the space, particularly in the case of Bitcoin, due to its deeper market thickness and precedent in the case of a macro hedge.

As long as Ethereum develops its story, the structure of the Bitcoin market is quite healthy. A squeaky clean technical formation, the influx of institutions into the equation, and a healthy underpinning. Above 117K indicate that things are looking up.

However, in spite of this bullish narrative, there continue to be short-term resistance levels between $119,500 and $120,000. The price action over the next few sessions will be crucial in establishing. Whether or not Bitcoin can break out firmly to new all-time highs.

Bitcoin price could gain the possibility to even retest or exceed the $130,000 level. In case of a full-blown play out of the pattern.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss. That may occur from investing in or trading. Please do your research before making any financial decisions.