Bitcoin BTC Trades Near $72,000 Following Major Institutional Purchases

TLDR

• Bitcoin surges past $70,000, reaching three-month high around $72,000
• Bitcoin ETF trading volumes hit record $4.5B, with BlackRock’s IBIT leading at $3.3B
• Bhutan transfers $66.5M in Bitcoin to Binance while retaining $886M in reserves
• Technical analysis suggests potential peak around $76,600 based on ABCD pattern
• RSI at 73 indicates overbought conditions, though upward momentum continues

Bitcoin pushed past the $70,000 mark this week, reaching a three-month high as institutional trading volumes hit new records and large players made notable market moves.

The world’s largest cryptocurrency traded near $72,000 on October 30, marking a strong reversal from last week’s downward trend.

The price movement coincided with unprecedented activity in Bitcoin ETF trading, which exceeded $4.5 billion in daily volume.

BlackRock’s IBIT ETF emerged as the dominant force in the market, recording $3.3 billion in trading volume – its highest daily activity in six months.

Other major players also saw robust trading, with Fidelity reporting $548 million in volume and Grayscale following with $388 million.

The surge in institutional interest through ETFs provides concrete evidence of Bitcoin’s growing mainstream acceptance.

ARK Invest and Bitwise added to the momentum with volumes of $136 million and $130 million respectively, while other established firms like VanEck, Invesco, and WisdomTree also recorded active trading.

Market data revealed that $115 million in short positions were liquidated during the price increase, indicating a costly day for traders betting against Bitcoin’s rise.

This forced closing of bearish positions may have added fuel to the upward price movement.

In a separate development, the government of Bhutan transferred $66.5 million worth of Bitcoin to Binance in two transactions on October 29, as reported by Arkham Intelligence.

Despite this large transfer, Bhutan maintains substantial Bitcoin reserves of approximately $886 million, accumulated through mining operations over the past five years.

Bhutan’s Bitcoin holdings now represent more than 26% of the country’s $2.9 billion GDP, surpassing El Salvador’s known Bitcoin reserves by a factor of two.

JUST IN: 🇧🇹 Kingdom of Bhutan has moved $66 million worth of #Bitcoin to Binance.

They still hold 12,456 BTC worth $887 million pic.twitter.com/wsultzYzbb

— Bitcoin Magazine (@BitcoinMagazine) October 29, 2024

The nation has used its crypto profits to fund various initiatives, including a 50% salary increase for public sector employees.

Technical analysts point to several key indicators in the current market structure. A descending wedge pattern break suggests the end of the lower price trend seen throughout Q3 2024.

The price action indicates strong buyer interest, with over 70% of traders in a CoinMarketCap poll expressing bullish sentiment.

The 50-day Exponential Moving Average (EMA) at $69,800 serves as a crucial support level for the current upward trend. Resistance levels are identified at $73,600, $75,000, and $76,600, with the latter representing a potential peak based on the completion of an ABCD pattern.

The Relative Strength Index (RSI) reading of 73 indicates overbought conditions, though no major price divergence has been observed. This suggests the possibility of continued upward movement despite the elevated RSI levels.

Support levels below the current price are established at $71,400, $70,200, and $68,800, providing potential cushions should any profit-taking occur. Traders note that maintaining prices above $71,400 is key to preserving the bullish momentum.

International developments have added context to the market movement. U.S. President Biden recently praised Nigeria’s efforts to combat cryptocurrency-related financial crimes and launched a Bilateral Liaison Group focused on illicit finance and cryptocurrencies. This cooperation highlights the growing focus on regulatory frameworks in the crypto space.

The market awaits the post-halving price dynamics, with historical patterns suggesting potential for further upside. Previous halving events in 2016 and 2020 preceded major price rallies, though past performance does not guarantee future results.