Two buys totalling nearly $1 billion each on Friday and Monday by the U.S. Spot Bitcoin ETFs have helped to push Bitcoin over $100,000 again.
Heavy buying from the U.S. Spot Bitcoin ETFs
As much as the charts say that Bitcoin is overbought right now, heavy institutional buying is keeping the price aloft. $BTC is currently just below $202,000 on Tuesday, and if the heavy buying continues into the rest of this week, a new all-time high may not be out of the reckoning.
On Monday, the U.S. Spot Bitcoin ETFs bought big again. A total of 9.95 BTC was the total inflow, amounting to almost $1 billion. This was the 5th biggest daily inflow on record, just beating Friday’s purchase of 9.36K BTC.
The difference in the buying share over these last two purchases was that for once, Blackrock’s IBIT fund did not take the lion’s share. Instead, Fidelity’s FBTC fund bought most, with 3.68K BTC and 3.76K BTC on Friday and Monday respectively.
MicroStrategy announces a 1,070 BTC purchase
MicroStrategy announced its now customary buy on Monday. The purchase was 1,070 BTC in total, amounting to $101 million. The purchases for MicroStrategy have tailed off over the last couple of weeks, but with at least $42 billion in planned BTC buying over the next three years, there is a lot more to come from this particular demand source.
$BTC overbought. How deep will the dip be?
Source: TradingView
Despite the recent big purchases, the $BTC price is overbought, and a period of downside price action is probably what needs to follow from here. The short-term chart shows that the $BTC price is just starting to roll over, and has come up against the first support of the 0.236 Fibonacci.
If a bounce should occur here, or even at the 0.382 Fibonacci, this would be extremely bullish, but a healthier and deeper correction would probably be better for the price going forward. The 0.5 Fibonacci at just under $100,000, or the 0.618 Fibonacci at $96,300 would be good levels for a bounce.
Monthly price targets
Source: TradingView
Zooming right out into the monthly time frame, the big picture becomes apparent. The price is currently up against the 1.618 Fibonacci for the whole bull market. Further target price levels can be seen above.
Looking at the next segment down in the chart, the Stochastic RSI lines are angled up, displaying bullish momentum.
At the bottom of the chart, the Relative Strength Index (RSI) is showing a nice bounce from the descending trendline. However, the indicator line will need to get all the way to the 91.70 level in order to nullify extremely strong bearish divergence. If it does not do so, a bear market will in all likelihood commence.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
