BlackRock’s Bitcoin Dominance Surges as BTC Tests Critical $113K Resistance Level
Bitcoin stays above $111,000 as institutional custody patterns disrupt the cryptocurrency landscape. BlackRock's ETF holdings are now bigger
Quick overview
- Bitcoin remains above $111,000 as institutional custody patterns shift, with BlackRock's ETF holdings surpassing those of major exchanges.
- BlackRock's iShares Bitcoin Trust has accumulated approximately 745,357 BTC, indicating a significant move towards regulated ETF structures among institutional investors.
- Bitcoin exchange inflows have reached multi-year lows, suggesting a tightening supply as investors are less inclined to sell at high prices.
- Technical analysis indicates that Bitcoin is at a critical resistance level around $113,000, which will determine its near-term price direction.
Bitcoin BTC/USD stays above $111,000 as institutional custody patterns disrupt the cryptocurrency landscape. BlackRock’s ETF holdings are now bigger than those of major exchanges, and technical signs show that price direction is about to change.
BlackRock ETF Holdings Eclipse Traditional Exchange Custody
BlackRock’s iShares Bitcoin Trust (IBIT) has reached a big milestone by getting about 745,357 BTC, which is more than Coinbase’s 706,150 BTC and Binance’s 584,557 BTC. As institutional investors increasingly prefer regulated ETF structures over traditional exchange custody, this adjustment signifies a major shift in how Bitcoin is held.
This trend goes beyond Bitcoin. BlackRock’s Ethereum ETF holds 3.6 million ETH, which is only 200,000 ETH behind Coinbase. If BlackRock keeps adding to its Ether holdings at the same rate, it might become the world’s largest Ether custodian by the end of the year. This would make institutional crypto holdings even more stable under standard asset management systems.
This move to a new custody system is part of a larger trend in institutions moving away from direct exchange holdings in favor of regulated investment vehicles. The fact that a lot of Bitcoin and Ethereum are held in ETFs means that there is less liquid supply in the market, but it also shows that institutions still believe in virtual assets.
BTC’s Exchange Inflows Hit Multi-Year Lows Signal Supply Tightening
The supply story is strong because Bitcoin exchange inflows have dropped to their lowest 30-day moving average since May 2023. This drop in exchange deposits shows that both individual and institutional investors are less likely to sell, even while Bitcoin is trading at historically high prices.
Ethereum shows similar patterns, with inflows dropping to around 25 ETH in April 2024, when the asset was worth $1,700. This is a big difference from the present price of around $4,600. The lack of large exchange inflows at higher price levels shows that holders are sure of their position and don’t want to sell.
ETF flows tell a different story. Since last Thursday, Ethereum ETFs have had net inflows of more than $1.5 billion, including a record $450 million in one day. Last week, Bitcoin ETFs lost $1.17 billion, but they have since gained $310 million, which suggests that institutional investors are now again interested in them.
BTC/USD Technical Analysis Points to Critical $113K Resistance Test
Bitcoin’s technical structure shows that it is at a crossroads. It has regained its 100-day exponential moving average (yellow) around $110,850, which is a historically important level for market bottoms. The current bounce from the low of $108,734 means a recovery of more than $3,000, but it will have trouble getting through the important $112,500-$113,000 zone right now.
Technical analysts say that the $113,000 mark is the most important factor in deciding which way prices will go in the near future. If this resistance level is broken, it might start a rally toward $116,000-$117,000, thanks to the current bullish momentum and lower supply on the market. If it doesn’t move past this level, though, it might test the $110,600 support level again, with possible downside objectives around $109,500 and $108,750.
Bitcoin broke over a crucial bearish trend line at $111,350 on the hourly chart, but momentum signs are still mixed. The MACD shows that the bearish momentum is getting weaker, and the RSI is below 50, which means that the market may be consolidating before the next move.
Bitcoin Price Prediction: Bullish Bias With Cautious Optimism
If Bitcoin can stay above $112,000 in support, it looks like it will be able to test the $116,000-$117,000 resistance levels based on current technical and fundamental indicators. A optimistic perspective for the near future is supported by the fact that the supply of exchanges is getting tighter, institutional ETFs are building up, and technical bounce patterns are happening.
However, people in the market should keep a careful eye on the $113,000 resistance level. If the price doesn’t break through this level, it might lead to a further decline toward $102,000, which would confirm a possible double-top formation. It will be very important for the cryptocurrency to stay above the 100-day EMA in order to keep the bullish trend going until the end of the year.
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