Bitcoin is back in the spotlight, climbing above $116,000 amid renewed interest from institutional investors and improved market sentiment.
The leading cryptocurrency has gained nearly 2% over the past 24 hours, bringing its market capitalization to $2.31 trillion, even as trading volume slightly declined.
This latest rally follows a volatile start to August, with Bitcoin recovering strongly from its recent dip below $113,000. The bounce has coincided with a significant shift in ETF activity and renewed interest from long-term holders.
Institutional Inflows Return, Led by BlackRock
One of the primary catalysts behind Bitcoin’s rebound is the return of net inflows into spot Bitcoin ETFs. After four days of outflows, August 5 saw a resurgence, with BlackRock’s IBIT ETF receiving $91.5 million in fresh capital. Notably, Hong Kong-based Trivest Advisors disclosed a bold move: allocating 8% of its $1.2 billion portfolio to IBIT. This underscores growing institutional participation from the Asia-Pacific region and highlights Bitcoin’s increasing role in global portfolio strategies.
These ETFs now collectively hold around 1.27 million BTC – roughly 6% of Bitcoin’s total circulating supply – locking up significant liquidity and reducing selling pressure on exchanges.
Technical Picture Strengthens Above $116K
From a technical perspective, Bitcoin has managed to hold above key short-term support levels, bouncing off its recent low at $112K. It is now hovering just beneath the 30-day simple moving average, with $116,900 emerging as a key resistance level to watch.
Sentiment is also shifting. The Fear & Greed Index has ticked upward from neutral to 54 (greed territory), hinting at a growing appetite for risk. However, indicators remain mixed: while the Relative Strength Index (RSI) approaches 68, showing signs of strength, the MACD histogram remains slightly negative, signaling ongoing consolidation risk.
Ali Martinez of CryptoQuant highlighted that long-term Bitcoin whales have realized over $44 million in profits in the last two days, suggesting that while accumulation is underway, some profit-taking is also occurring.
Looking Ahead: Will Resistance Break?
For Bitcoin, the next decisive moment hinges on whether it can convincingly break above $116.9K – the cost basis for short-term holders. A daily close above that level could trigger a wave of short-covering and renewed momentum toward the $120K range. On the flip side, failure to hold could prompt another retest of the $112K support zone.
Another wildcard in the mix is recent on-chain data pointing to a transfer of 517 BTC from Bhutan-linked wallets, which could reintroduce supply-side pressure if those coins hit exchanges.
Conclusion
Bitcoin’s latest rally above $116,000 reflects a rebound in institutional appetite and technical stabilization, but the road ahead remains uncertain. ETF inflows are providing crucial support, yet market watchers are keeping a close eye on resistance zones and potential whale activity. With sentiment slowly turning bullish, the battle around $116.9K could define Bitcoin’s next major move.
The information provided in this article is for informational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/market/bitcoin-surges-past-116000-with-fresh-institutional-buying/