Senior ETF Analyst at Bloomberg Eric Balchunas reports that premarket share trading for BlackRock's iShares Bitcoin Trust (IBIT) generated an impressive $2 million. This considerable volume transpired before the market opening, which is a positive atmosphere for the broader cryptocurrency market.
SEC Approved Bitcoin ETF
Recently, the SEC approved ten other applications and declared the registration statement for BlackRock's spot Bitcoin ETF effective. IBIT, an investment token intended to mirror the price of Bitcoin, is slated to begin trading on the Nasdaq today, adding an untried element to the cryptocurrency investment sphere.
Analysts approach cautiously despite the early robust volume suggesting a positive beginning, speculating that BlackRock may be implementing a meticulously devised strategy by progressively stocking its established BYOA funds.
In the pre-market, IBIT has already exchanged hands for $2 million, which is considerable for an ordinary exchange-traded fund (ETF) to trade on an entire day. Analysts believe, however, that this volume was likely orchestrated by BlackRock to load the funds it had set up strategically. However, it remains a favourable preliminary indication for the momentous day ahead.
BlackRock Could Invest More In IBIT
iShares Bitcoin Trust (IBIT) has garnered considerable interest in the premarket, as evidenced by its remarkable increase to the $30.00 level, as shown in the chart. This early momentum suggests that the first day of the ETF could be bullish.
According to industry sources, BlackRock may have compiled $2 billion in capital from Bitcoin holders anxious to invest in the spot Bitcoin ETF within its first week of operation. The $2 billion inflow would exceed all current records for initial-day and initial-week inflows into exchange-traded funds (ETFs).
BTCUSD Technical Analysis
In the daily chart of Bitcoin price, a volatile market structure is visible within an ascending channel. Moreover, there is divergence with the Relative Strength Index as the recent RSI failed to follow the price in making a new higher high.
A strong bull run is visible in the BTC price, starting from the low in September 2023. The hope for Bitcoin ETF approval was the fuel for the bull that already provided a 96% gain from the bottom. In that case, the “Buy on Rumor and Sell on Actual” concept could be an alarming sign to bulls.
In the recent chart, the price became volatile below the 50,000.00 psychological level with MACD and RSI divergence. However, the dynamic 20-day EMA still works as a strong support with a bullish slope.
Based on the daily structure, a strong bearish pressure below the 41,487.43 support level could activate the counter-impulsive bearish momentum, targeting the 30,361.45 imbalance area.
On the other hand, the ongoing bullish momentum from the fundamental-driven sentiment could provide immediate bullish pressure after having a daily close above the 49,000.00 level. A minor downside correction might appear, but a rebound from the 43,288.81 to 41,487.43 area could keep the bullish trend intact. In both cases, a buying pressure above the 50,000.00 level resumes the long-term bullish trend, aiming for the 70,000.00 psychological level.