Institutional Investors Boost Bitcoin ETFs, Fueling Price Rally -

BlackRock’s IBIT fund manages assets worth nearly $10 billion, primarily in Bitcoin, with over 162,000 BTC. This ETF has quickly become one of the largest, with such significant assets. Currently, only 150 out of a total of 3,400 ETFs have reached this $10 billion milestone.

PlanB, the creator of the stock-to-flow Bitcoin analysis model, has revealed that the accumulation phase has concluded and is now transitioning into a full-fledged bullish period. This could potentially trigger ‘FOMO’ among investors over the next 10 months. However, caution is advised, as there may be corrections of up to 30%.

Merrill Lynch and Wells Fargo, two major financial institutions, are preparing to offer Bitcoin ETFs to high-net-worth clients. Previously, UBS and Citigroup have also presented this product to their clients. Meanwhile, Morgan Stanley is currently mulling over this investment option for its clients.

CoinMarketCap reports that the total crypto market capitalization has once again reached the $2 trillion mark, the first time since April 2022. This level surpasses the market value of companies such as Amazon and Alphabet.

Bloomberg reports that Bitcoin ETFs have generated a record-high trading volume of $2.4 billion within a single day, marking a historic milestone. IBIT has led in trading volume since the launch of Bitcoin ETF trading. Overall, the total trading volume of all Bitcoin ETFs has exceeded $52 billion.

Michael Sonnenshein, the CEO of Grayscale, believes that the arrival of Bitcoin ETFs opens up opportunities for more than $40 trillion in investment capital to flow into Bitcoin, potentially leading to mass adoption. He anticipates that the Bitcoin halving events will further pique investor interest.

Data from Glassnode reveals that on March 1st, Bitcoin withdrawals from exchanges amounted to approximately $2.3 billion. This withdrawal, the largest in five years, suggests that some investors remain confident in Bitcoin’s upward trend.

JPMorgan analysts predict that after the halving event, the price of Bitcoin may drop to touch $42,000. This projection is based on increasing mining costs, as the rewards for miners will decrease from the current 6.25 BTC per block to 3.125 BTC, leading to selling pressure.

The total value locked in the Lido protocol, which offers liquid staking for Ethereum, has surpassed $30.56 billion. This figure is higher than its previous peak of $20.83 billion, achieved on April 5, 2022. Consequently, Lido now stands as the largest validator in the Ethereum blockchain, commanding a 32% share.

Weekly Technical Analysis: 5 – 11 Mar 2024

Bitcoin (BTC)

BTC has been continuously adjusting upward, reaching new highs. However, the Relative Strength Index (RSI) is showing signs of BTC entering overbought territory. This suggests that there’s a possibility of the price stabilizing or retracing this week. The lowest support level is seen at around 2,000,000 THB, where a retracement is viewed as a buying opportunity. It’s anticipated that BTC may successfully reach previous highs before the halving event occurs.

Support : 2,000,000 THB Resistance : 2,500,000 THB

Support : 55,000 USD Resistance : 69,000 USD

Ethereum (ETH)

ETH has been adjusting upward, closely following BTC, after being a laggard for some time. The momentum still suggests further upside potential, but in the short term, there might be a retracement. The estimated support level is around 107,500 THB, which could serve as a buying opportunity. The projected resistance target for this round is 135,000 THB.

Support : 107,500 THB Resistance : 135,000 THB

Support : 2,800 USD Resistance : 4000 USD

Shiba Inu (SHIB)

SHIB, driven by strong upward momentum, has surged by 125.46% in the past week, indicating a bullish trend. However, there might be selling pressure incoming. Short-term resistance is estimated at 0.0011 THB, while support is at 0.00065 THB. Maintaining these levels could sustain the bullish trend

Support : 0.00065 THB Resistance : 0.0011 THB

Support : 0.000018 USD Resistance : 0.000031 USD

Dogecoin (DOGE)

DOGE has surged by 72.37% in the past week, signaling a reversal of a bullish trend. However, caution is advised, as there may be significant downward pressure. Short-term support is estimated at 4.6 THB, suggesting a wait for entry for those who haven’t bought yet. Meanwhile, short-term resistance is at 6.6 THB. Prices may fluctuate, so trading should be approached with caution.

Support : 4.6 THB Resistance : 6.6 THB

Support : 0.13 USD Resistance : 0.18 USD

Trading and Investment Considerations For The Week

Bitcoin’s price has remained steady throughout the week, while the Bitcoin Dominance Index has decreased from its peak at 55. This downward trend suggests that we are approaching an ‘altcoin season’.

Following the previous rallies of AI (artificial intelligence) and DeFi coins, the focus has now shifted towards gaming tokens and meme coins. The market continues to see fluctuations, with potential for profit in blockchain Layer1 and Layer2 tokens that have yet to experience significant price surges.

In the past month, Ethereum has managed to outperform Bitcoin slightly in terms of returns. The trend for Ethereum is expected to continue upward. Overall market activity may see profit-taking before the Bitcoin halving event in the latter half of April. The buying pressure on Bitcoin through ETFs continues to remain consistent.

This week, on Wednesday, March 6th, the Chair of the Federal Reserve will deliver a speech outlining monetary policy to the Economic Committee of the House of Representatives. Investors will closely watch the remarks, as they could impact market conditions.

The announcement of the non-farm payroll figures is expected this Friday, March 8th. The market anticipates around 190,000 positions, a decrease from the previous month’s 353,000 positions. If the numbers align with these expectations, it could bode well for the market, especially amid hopes that the Federal Reserve might expedite interest rate cuts.

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