BlackRock, the world's largest asset management company, has made a notable move by significantly increasing its Bitcoin (BTC) holdings on December 6. This action came shortly after Grayscale, another asset management firm, sold $150 million worth of BTC.
This aggressive buying by BlackRock reflects the growing confidence in the long-term prospects of Bitcoin, especially as large institutions are rushing to buy after BTC reached the historic $100,000 milestone.
Bitcoin first reached the $100,000 price level on December 5, a milestone that prompted Grayscale to sell $150 million worth of BTC according to a report from Arkham. In contrast, BlackRock seized the opportunity to increase its Bitcoin holdings, adding an additional $750 million worth of BTC in a single day. The company is now believed to be holding around 500,000 BTC, affirming its strong belief in the potential of this asset despite short-term volatility.
BlackRock's buying activity has helped Bitcoin test the $100,000 mark again after a slight dip to $97,000. This raises the question of whether Bitcoin can maintain its upward momentum and move even further in the coming period.
An important indicator to analyze Bitcoin's price trend is the SOPR (Spent Output Profit Ratio). This metric is calculated by comparing the profits generated by long-term hodlers (LTH) with the profits of short-term hodlers (STH).
Generally, a high SOPR value suggests that Bitcoin's price may be approaching a peak, while a low SOPR implies the price is likely to approach a dip. Currently, Bitcoin's SOPR has dropped to 1.45, indicating that short-term investors are gaining the upper hand. This also suggests that Bitcoin still has room for growth in the coming period.
If this trend continues, Bitcoin could trade above $100,000 in the coming weeks.
Technically, Bitcoin's price is currently trading within a symmetrical triangle pattern on the 4-hour timeframe. This is a sign of an accumulation phase, where the price oscillates between two converging trendlines before a significant breakout occurs.
Furthermore, the Chaikin Money Flow (CMF) indicator is maintaining in the positive zone, indicating substantial buying pressure in the market. If this pressure continues and BlackRock maintains its strategy of increasing Bitcoin holdings, BTC's price could reach $103,649 in the short term.
In a strong bullish scenario, Bitcoin could rise to $110,000. However, if institutions like Grayscale continue to sell in large volumes, Bitcoin's price could drop to $93,378.
Disclaimer: This article is for informational purposes only and not investment advice. Investors should do their own research before making any decisions. We are not responsible for your investment decisions.
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