- BlackRock transferred $125 million in Bitcoin to Coinbase, increasing market uncertainty.
- Bitcoin fails to break $94,000 resistance after multiple attempts.
Bitcoin trading is still very volatile after a massive move from institutions that has scared the investors on different global exchanges in the last few trading sessions. On-chain metrics are pointing to a further drop in price before the digital asset can regain a bullish trend. Investors are paying extreme attention to the fundamental levels of support that will possibly signal the Bitcoin price movement in the following few days.
Institutional Activity Heightens Market Pressure
Bitcoin’s fight to keep its upward trend going beyond important levels was made even more difficult after BlackRock carried out a large transfer of digital assets worth roughly $125 million to the Coinbase exchange. The moment of this move, combined with the worsening of the market, made the traders take more cautious positions because they were very uncertain about the institutional intentions.
The digital asset is trading close to $89,250 after several failed attempts to break through the resistance area of $94,000, which has been strong in the last few sessions. On each occasion, the rally has been met with determined selling, thus there has been no result in any continued upward movement, and the bearish sentiment has been strengthened among those active market participants who are watching closely.
The market strain has been augmented by the latest U.S. inflation data showing the PCE index going up to 2.8%, which led to a decrease in risk appetite across financial markets. This macroeconomic development has been a major factor behind the deepening of liquidity conditions, which, in turn, has made it very hard for buyers to raise prices even though there is some buying interest.
From a technical standpoint, there are troubling signs that point to the possibility of the world’s largest cryptocurrency by market capitalization facing further losses in the near future. The asset is moving within a bearish pennant flag formation, which is a continuation pattern that generally indicates further drops if it is accompanied by a sharp decline in price.
The Parabolic SAR instrument reveals that the dots are placed above the existing price movement, thus affirming that the sellers are the ones who have a firm grip over the prevailing trend direction. At the same time, the Directional Movement Index shows negative directional strength at 25, slightly above positive directional strength at 24, which means that there is still a dominating selling pressure.
Market analysts have turned their attention to the $88,000 level as the next major point of testing. If the price were to break down from there, it could possibly lead Bitcoin to drift towards $84,000 where it is believed that a more solid support level may be present. From there on, the lower area might be able to offer the base required for any substantial bounce back. However, the present situation is still not very comfortable for those traders and investors who want to take risks.
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Source: https://thenewscrypto.com/bitcoin-under-pressure-following-blackrocks-125m-btc-move/
