- Bitcoin price soared 5% on Friday, reclaiming space above $61,000 after successful sweep of liquidity previously residing between $60,600 and $59,005.
- Data shows Hong Kong asset-managers have exposure to US spot BTC ETFs, having bought $112 million worth of it.
- CryptoQuant data says BTC whales have acquired 47,000 BTC during recent correction.
- Michael Saylor highlights Bitcoin as main crypto asset for institutional investors, foresees limited institutional acceptance for other cryptocurrencies.
Bitcoin (BTC) price is trading with a bullish bias, with tailwinds coming from multiple market developments. Among them, reports indicate that large holders capitalized on the recent correction to increase their BTC bags.
Also Read: Meme coins lead way as PEPE, BONK hint at possible marketwide uptrend
Daily digest market movers: Whales accumulate Bitcoin worth $2.7 billion
Amid the recent correction that saw Bitcoin price bottom out at $56,552 on Wednesday, reports indicate that whales capitalized on the correction to buy 47,000 BTC worth a whopping $2.7 billion.
Whales tend to see a correction as an opportunity to accumulate more Bitcoin at a lower price. They have the resources to take advantage of price dips and increase their holdings. Those with a long-term investment strategy view corrections as temporary fluctuations in the market, believing in the future potential of Bitcoin and leveraging corrections to increase their position in the market.
This accumulation is a genuine strategy for some, creating positive momentum in the market. By increasing demand during a dip, they can drive up the price and potentially profit from the subsequent price increase. For others, the correction was a manipulation in the first place.
In other developments, Hong Kong-based asset managers Yong Rong Asset Management and Ovata Capital Management have reported exposure to US spot BTC exchange-traded funds. Data shows that the former bought $38 million worth of BlackRock’s iShares Bitcoin Trust (IBIT), while the former invested in four other Spot BTC ETFs with a value of more than $74 million. This brings the total investment to $112 million, which is surprising considering the Asian city has their own version of the same product launched only this week.
JUST IN: Hong Kong-based asset managers report buying $112 million worth of US-based spot #Bitcoin ETFs.
— steffan jensen (@steffanjv) May 3, 2024
- Michael Saylor props up BTC but disses other altcoins
In another interesting twist, MicroStrategy founder and major BTC investor Michael Saylor recently hailed Bitcoin, while throwing shade on other altcoins like XRP, ETH, BNB, SOL and ADA, saying they are “crypto assets securities unregistered,” adding that “None of them will ever be wrapped by a spot ETF[…]accepted by Wall Street[…]or mainstream institutional investors as crypto assets”.
This has raised controversy outside the BTC community, with some saying he only cares about his bottom line.
These developments inspired bullish sentiment in the market, influencing demand for BTC and effectively fueling a recovery in Bitcoin price.
- Lower job numbers in the US
The pioneer crypto may also have benefitted from the risk-on mood triggered after the US added less jobs than expected in April. Nonfarm Payrolls registered for April registered at 175K, which was well below March’s 315K revised figure.
Specifically, lower job numbers can indicate economic uncertainty or a slowdown in the economy. In times of economic uncertainty, investors may turn to alternative assets like Bitcoin as a hedge against traditional financial markets. This increased demand for Bitcoin could potentially drive up its price.
Technical analysis: Bitcoin price rises on growing bullish sentiment
After a slow liquidity collection, which happened when Bitcoin price dipped below the pool of liquidity stretching between $60,600 and $59,005, BTC is in recovery mode. Its test of the lower band of the Bollinger Bands indicator showed that BTC was oversold in the short term, which explains the ongoing push north.
As it faces resistance due to the center line of the indicator, which is basically a Simple Moving Average (SMA), a flip of this blockade into support would be confirmation of the uptrend, effectively signaling increased bullish momentum. Traders looking to open long positions for BTC should wait for a decisive move above the center line at $63,364, reinforced by a move of the Relative Strength Index (RSI) above the mean level of 50.
If the bulls are able to haul BTC above the $67,133 roadblock, the next level to beat would be $72,250, the midline of the supply zone that extends from $71,333 to $73,072. A decisive candlestick close above this mean threshold would confirm the continuation of the uptrend, bringing a new all-time high above $73,777 into focus.
BTC/USDT 1-day chart
On the other hand, a rejection from the center line could send Bitcoin price lower. If it produces a lower low below $56,552, it would suggest a trend reversal, sending Bitcoin price to $55,000 or even the $50,000 threshold.
