- Bitcoin rebounds to $119,010 after dipping below $123,236, staying within a broad ascending channel since August.
- With support at $118,753 from the 50-SMA and a critical floor at $117,335, Bitcoin remains structurally stable.
- Institutional interest grows as BlackRock accumulates $523M in Bitcoin, while spot Bitcoin ETFs saw $230M in net inflows.
Bitcoin is slightly rebounding at the moment and currently trading at $119,010 after the cryptocurrency plunged below the $123,236 resistance level earlier in the week. The cryptocurrency is positioned in a wide ascending channel, which has given it a stable uptrend since early August. This bounce back follows a short-term retracement and indicates that the market will continue to operate despite the current price volatility.
The previous dynamic support is the 50-SMA at $118,753, as it has decreased the intraday pullbacks several times. The fact that BTC could maintain this level implies that it has a great background in the existing market structure. Also, the crypto remains structurally stable since the Fibonacci retracement level at 0.236 at $117,335 has proved to be a critical support line on its future.
Source: TradingView
RSI and MACD Signals Indicate Bitcoin Upswing
Among the technical signals are the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) histogram, which are now posting positive indications. The RSI has recovered to the upper 40s recently, which is a sign that selling is slowing.
Also Read: Strategy Boss Predicts Bitcoin Will Crush S&P 500 by 40% Annually
The histogram of MACD has also flattened, meaning that bearish impetus has declined. These advancements show a possibility of upward movement in the nearest future.
If BTC maintains its stability above the $117,300 price level, bulls could potentially make another upswing to the $123,236 resistance area. In the event of surpassing the said level, the next technical goal will be at the price of $126,242, which may create the preconditions for further increase to a higher price.
Whale Purchases and Inflows Strengthen Bitcoin Market
Among such technical aspects, an unknown whale has purchased BTC worth $792 million in a revamp of the market. The purchase was following a liquidation spree that erased leverage of $1.05 billion. Surprisingly high US inflation figures resulted in this liquidation, leaving all markets to auction and Bitcoin to fall to its present rates compared to the high of 124,457 dollars.
Source: SoSo Value
The massive acquisition is also consistent with BlackRock’s strategy of fierce accumulation in the market. On Thursday, the asset manager bought BTC’s worth $523 million and Ethereum worth $519 million amid the decline in the stock market. The step indicates the increasing institutional interest in the cryptocurrency market, which spells a good prospect for large dealing entities.
On Aug 14, US spot Bitcoin ETFs saw net inflows of $230M, headed by BlackRock’s IBIT, which received $524M of inflows. Inflows of ETFs on Ethereum amounted to impressive inflows of $640 million, with a core inflow of $520 million into the ETHA.
Analyst Daan Crypto Trades highlighted that the cryptocurrency closed much of its CME gap that appeared earlier this week. However, a portion of the gap remains unfilled. The analyst indicated that the market was opened and did not close within a gap over the weekend; it took three or four days to close, longer than usual.
Source: X
The recent gap, along with its prolonged duration of closure, can be regarded as a significant level to monitor. If Bitcoin prices head downward and retest lower levels, this gap may provide a considerable point of reference for traders. The market will be anxious to see how the price behaves in the coming days, as it attempts to move in and out of these technical levels.
Also Read: Bitcoin Nears All-Time High as Global Liquidity Drives BTC Price Surge
