BlackRock, one of the world’s largest asset management companies, has once again made a significant move in the cryptocurrency industry. On October 16, 2024, Lookonchain, a blockchain-based transactions tracker, revealed that BlackRock had increased its Bitcoin holding by 4,323 BTC, which is worth nearly $293.41 million.
This latest purchase by BlackRock comes on the heels of the firm’s sale of 182 BTC, amounting to $11.34 million, on October 11, 2024. The news of BlackRock’s increased Bitcoin holding has sparked a bullish sentiment among investors and traders, as the asset approaches a strong resistance level where it has previously faced significant selling pressure and experienced a price decline of over 20%.
In terms of technical analysis, Bitcoin appears bullish but is currently facing strong resistance at the upper boundary of a descending channel pattern. Since March 2024, Bitcoin has approached this level six times, with each attempt resulting in a price decline.
However, there is a shift in sentiment this time around. If Bitcoin manages to breach the resistance level and close a daily candle above $68,800, there is a strong possibility that the asset could reach its all-time high and potentially set a new record.
On-chain metrics further support Bitcoin’s positive outlook. According to CoinGlass, a leading on-chain analytics firm, Bitcoin’s Long/Short ratio currently stands at 1.03, indicating bullish sentiment among traders. Additionally, Bitcoin’s future open interest has increased by 4.9% over the past 24 hours, suggesting growing trader interest and a potential accumulation of positions compared to the previous day.
As of now, the major liquidation levels for Bitcoin are at $67,300 on the lower end and $68,600 on the upper end. Traders are over-leveraged at these levels, according to CoinGlass. If Bitcoin reaches $68,600, approximately $568,400 worth of short positions will be liquidated, while a drop to $67,300 could lead to the liquidation of around $6.7 million worth of long positions.
Analyzing the liquidation data reveals that bullish bets on long positions outweigh bearish short positions significantly. At the time of writing, Bitcoin is trading near the $68,010 level, experiencing a price surge of over 1.7% in the past 24 hours. Trading volume has also increased by 12%, indicating higher participation from traders and investors compared to the previous day.
Overall, BlackRock’s increased Bitcoin holding, coupled with positive technical analysis and on-chain metrics, suggests a bullish outlook for Bitcoin in the near term. Investors and traders will be closely watching to see if Bitcoin can break through the resistance level and potentially reach new highs.