Bitcoin Faces Key Resistance at $123.8 as Abu Dhabi Holds $681M Exposure

Key Insights:

• Abu Dhabi holds $681M in Bitcoin ETFs, showing growing institutional interest in the asset.
• Bitcoin tests $123.8K resistance with momentum weakening, signaling potential market struggles ahead.
• Bitcoin’s price may dip to $113.6K support if momentum turns negative in the coming sessions.

Bitcoin (BTC) is currently testing critical resistance levels, with $123.8K as a key point for price movement. At the same time, two major Abu Dhabi sovereign wealth funds are holding significant Bitcoin exposure, valued at $681 million. These holdings reflect growing institutional interest in Bitcoin, even as the cryptocurrency market shows signs of a potential pullback.

Abu Dhabi’s Bitcoin ETF Holdings

According to Cas Abbé, one of Abu Dhabi’s sovereign wealth funds, Mubadala holds 8.72 million shares of the Bitcoin ETF ($IBIT), valued at $534 million. Another fund, Al Warda, which Mubadala also manages, holds 2.41 million shares worth $147.5 million.

This brings the total exposure to approximately $681 million in Bitcoin ETF holdings. These investments have remained stable since May, reflecting the fund’s long-term strategy. As mentioned by Cas Abbé, Diamond hands at a nation-state level, the fund’s commitment to holding onto their Bitcoin exposure.

These extensive holdings underscore Abu Dhabi’s increasing interest in Bitcoin despite its volatility. The funds have not adjusted their positions, suggesting confidence in Bitcoin’s future potential.

Bitcoin’s Market Resistance and Momentum

However, based on market analysis Zynweb3, while the momentum is slightly positive, it has shifted toward bearish territory. The momentum index stands at +0.12, but the structure has fallen to -0.47.

Notably, this shift highlights that while Bitcoin’s price is holding up, underlying strength is weakening. The divergence between positive momentum and a bearish structure signals a struggle between buyers defending levels and sellers at resistance.

In ZYN’s report, the market is in decision mode, and an analyst is tracking Bitcoin’s movements. The subsequent few trading sessions will likely provide key insights into whether Bitcoin can break past this resistance or face a deeper pullback.

Bitcoin’s Price Action and Potential Outcomes

Moreover, Bitcoin’s price was trading at $119,058, with a 24-hour trading volume of over $93 billion. The price has seen a slight dip of 2.26% over the past day, reflecting the market’s cautious stance. 

If Bitcoin’s momentum shifts into negative territory, the price could drop toward the support level of $113.6K. The market is in a critical phase, and Bitcoin’s price action will likely reveal the next direction.