Highlights:
- Bitcoin’s price action mirrors previous patterns, hinting at a significant breakout.
- Recent fakeout and range reclaim signal potential for a major upside move.
- BlackRock’s iShares Bitcoin Trust now holds more BTC than Grayscale’s, marking a significant shift in the ETF market.
After surpassing the $67,000 resistance level last week, Bitcoin exhibited a tighter price movement, oscillating within a confined range. This range was defined by an upper boundary of $70,500 and a lower support level of $66,800. On May 27th, BTC encountered resistance at the upper end of this shorter-term range, leading to a rejection from the higher price levels.
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As of press time, Bitcoin is trading at $67,840, having declined 0.30% since yesterday’s close. Over the past week, BTC has declined by more than 3% despite the monthly gain of almost 10%. The market capitalization and trading volume have dropped to $1.33 trillion and $29 billion, respectively.
Bitcoin Set for a Breakout, Says Analyst
According to crypto analyst Mags, Bitcoin is poised for a massive breakout. The recent market activity indicates a familiar pattern that could lead to significant price movement. Since hitting its cycle bottom, BTC has followed a repetitive pattern. The price consolidates within a specific range or triangle, breaks down momentarily to trap traders, and reclaims its position to push higher.
Looking at Mags’ analysis, Bitcoin has been consolidating for several months near its all-time high. During this period, a fakeout occurred, with many speculators predicting a drop to $50,000 or lower. However, BTC quickly regained its previous range, suggesting a breakout might be on the horizon.
This pattern of consolidation and breakout is familiar to Bitcoin traders. Each time the price consolidates, it sets the stage for significant upward movement. The recent fakeout has only strengthened the likelihood of a substantial breakout, as it weeded out weak hands and positioned the market for a robust upward thrust.
Mags highlights that the current price action mirrors previous patterns, where a consolidation phase is followed by a breakout. The price has already reclaimed its range, which is a bullish signal. If the pattern holds, BTC could be gearing up for a significant move to the upside.
BlackRock Overtakes Grayscale as Largest Bitcoin ETF
BlackRock’s spot Bitcoin exchange-traded fund (ETF) has surpassed the Grayscale Bitcoin Trust (GBTC) as the world’s largest Bitcoin ETF. By the end of trading on May 28, BlackRock’s iShares Bitcoin Trust (IBIT) recorded an inflow of $102.5 million, while GBTC saw an outflow of $105 million. This influx has brought BlackRock’s spot Bitcoin ETF to a total of 288,670 BTC, surpassing Grayscale’s 287,450 Bitcoin.
Bitcoin ETF Flow (US$ million) – 2024-05-28
TOTAL NET FLOW: 45
(Provisional data)IBIT: 102.5
FBTC: 34.3
BITB: 3.3
ARKB: 4.1
BTCO: 3.4
EZBC: 0
BRRR: 1.2
HODL: 0
BTCW: 1.4
GBTC: -105.2
DEFI: 0For all the data & disclaimers visit:https://t.co/4ISlrCgZdk
— Farside Investors (@FarsideUK) May 29, 2024
Grayscale’s holdings have decreased significantly despite starting with 620,000 Bitcoin in January. Data from Apollo Bitcoin Tracker highlighted this shift. IBIT now holds $19.68 billion in BTC, compared to Grayscale’s $19.65 billion. Fidelity’s ETF offering is further behind with $11.1 billion.
“There is a new king in the land of Bitcoin ETFs & it’s BlackRock,” wrote HODL15Capital. Both ETFs launched in January, but BlackRock’s ETF has since dominated inflows across all 11 spot Bitcoin ETFs.
Recent regulatory filings show that BlackRock’s income and bond-focused funds have purchased its spot Bitcoin ETF shares. In the first quarter, BlackRock’s Strategic Income Opportunities Fund (BSIIX) acquired $3.56 million worth of IBIT, while its Strategic Global Bond Fund (MAWIX) bought $485,000.
ETFs Possess 5% of the Total Circulating Supply
ETFs now control almost 5% of BTC’s total 21 million coin supply. U.S. Spot BTC ETFs hold around 842,000 BTC, worth about $57.2 billion. This makes up 4.27% of the current Bitcoin supply.
Globally, Bitcoin ETF issuers control approximately 1,002,343 BTC. MicroStrategy co-founder and former CEO Michael Saylor shared this information in a screenshot on X (formerly Twitter). The influence of ETFs on the BTC market is growing.
32 #Bitcoin Spot ETFs now hold ~1 Nakamoto of $BTC pic.twitter.com/OpHridlymc
— Michael Saylor⚡️ (@saylor) May 27, 2024
Spot BTC ETFs are becoming a significant force in the cryptocurrency landscape. They hold a substantial amount of BTC, indicating solid institutional interest. As ETFs acquire more BTC, they play a crucial role in the market’s dynamics.
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