Institutional Demand and Technicals Remain Bullish for Bitcoin Despite Strong Price Resistance

The cryptocurrency scene has seen intense clashes between buyers and sellers, with Bitcoin (BTC) experiencing frequent price fluctuations. It keeps setting new peaks and troughs in its attempt to surpass its former record-breaking value.

Two days ago, Bitcoin‘s price surpassed $70,000 once more, leading several analysts to make predictions. Their most popular forecast is that the coin would reach a new all-time high (ATH) soon. Since then, Bitcoin has been stabilizing, fluctuating between $69,000 and $71,000. It closed at around $70,000 on Tuesday and approximately $69,400 on Wednesday.

Ali Charts, an influential on-chain expert, provided insights into Bitcoin’s (BTC) effort to surpass its latest record high and pointed out two critical resistance levels: $70,180 and $70,600. At these price points, there are substantial selling orders placed by BTC bear investors. Based on his analysis of the on-chain data, approximately 292,000 and 397,000 addresses serve as strong resistance at those prices, respectively. If the bulls manage to push the price above these resistances, they will encounter yet another challenge in their quest for a new all-time high (ATH).

Approximately 292,000 Bitcoin addresses hold between 70,180 and 70,600 US dollars worth of Bitcoin, forming a notable resistance level in its price chart.
If #BTC can break past this barrier, it will likely march toward new all-time highs.
— Ali (@ali_charts) March 27, 2024

Technical Analysis Unveils Bullish Potential

In a previous post, Ali disclosed that the cryptocurrency bitcoin (BTC) seems to be escaping the confines of a bull flag formation on its 4-hour chart. Should BTC manage to stay above the $70,000 mark, the analyst is optimistic that this will trigger a significant increase of approximately 10%, potentially pushing BTC’s price to a new record high of $77,000.

Another crypto expert, Benjamin Cowen of ITC Crypto, shares this positivity. He believes that the Bitcoin train, leading in dominance among cryptocurrencies, is ready to depart soon. This viewpoint strengthens the belief of bulls and creates a beneficial market situation for Bitcoin, possibly extending to other digital currencies as well.

Institutional Influx Fuels Bullish Sentiment

Over the past 24 hours, there has been a significant surge of investments into the crypto market, driving optimistic expectations. Notable institutions like BlackRock and ARK 21Shares have poured in $323 million and $200 million respectively, indicating their belief in Bitcoin ETFs. This buying trend coincides with Bitcoin’s rising price and could potentially change the market’s momentum.

Supporting the rising trend, Ali disclosed that institutions and high-net-worth investors, acting like whales in this context, have bought over 100,000 Bitcoins, valued around $7 billion, within the last week. This significant purchase underscores the escalating appeal of Bitcoin as a valuable investment option.

#Bitcoin whales have purchased more than 100,000 $BTC over the past week, worth $7 billion!
— Ali (@ali_charts) March 27, 2024

Based on analysts’ forecasts of a bullish market and large-scale buying by whales, it appears that an uptrend is imminent. The current resistance levels preventing the price from rising are expected to be short-lived. Soon enough, we can expect the price to reach a new all-time high, potentially influencing investor sentiment towards altcoins and sparking a bullish trend for them as well.

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2024-03-28 16:39