Bitcoin (BTC) closed at $30,500 in June, bringing its year-to-date (YTD) gain to 85%. Outperforming the S&P 500 index by nearly 70%, institutional investors currently appear to hold long positions in BTC.
Is it expected that the recent market fluctuations could drive BTC up to $35,000 in the coming weeks?
Institutional investors are holding long positions in Bitcoin
According to on-chain data, a group of Bitcoin whales holding balances between 1,000 BTC and 10,000 BTC began buying BTC around June 15th. This coincided with the day BlackRock first filed for approval of its Bitcoin Spot ETF with the U.S. Securities and Exchange Commission (SEC).
Looking at the chart below, Bitcoin whales gradually executed large-scale buying transactions, accumulating a total of 60,000 BTC in the second half of June 2023. Thus, with the current BTC price at $30,500, Bitcoin whales have invested approximately $1.83 billion since BlackRock filed with the SEC. If the SEC approves the registration applications they received in June, BTC may witness an increase in whale demand in the coming weeks.
The on-chain Bitcoin Weighted Sentiment index is still trending downwards
The rejection of “incomplete” Bitcoin ETF registration applications has raised concerns among investors. The Santiment chart shows that BTC Weighted Sentiment remains at -1 despite the recent price increase.
Strategic investors are seeking opportunities to enter the market when sentiment indicators are still low, considering it a perfect time to buy BTC.
The optimistic sentiment of whales and the slightly subdued market sentiment are important indicators that suggest a greater potential for price increase ahead.
Bitcoin: All eyes are focused on $35,000
Based on the analysis of the provided on-chain Bitcoin data, speculative traders aiming for a price increase in BTC may set their target at $35,000. However, BTC first needs to surpass the initial resistance level around $31,000 to achieve that goal.
A group of 744,000 investors holding 288,000 BTC at an average price of $30,700 could potentially act as a resistance to the upward momentum. However, if the bullish camp manages to break through that resistance level, BTC could reclaim $35,000 for the first time since May 2022.
With the bearish camp still dominating much of the narrative in the media, Bitcoin is at risk of dropping below $28,000 once again. However, the presence of 1.55 million investors who bought 772,000 Bitcoin at an average price of $28,100 could potentially prevent a major decline. Nevertheless, if the support level does not hold, BTC could revisit the $27,000 mark once again.
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