NOIDA (CoinChapter.com) — Bitcoin’s recent rally past $100,000 has reignited enthusiasm among institutional and retail investors. However, the market faces turbulence following reports that BlackRock transferred 100,000 BTC—valued at over $10 billion—to 29 separate wallets.
The whale movement has questioned whether BlackRock’s intentions involve liquidating positions or preparing for market manipulation. Historical precedents like the Mt. Gox sell-off loom large in such scenarios, making the stakes higher for Bitcoin’s short-term outlook.
BlackRock’s BTC Transfers: Strategic Play or Sell-Off?
BlackRock’s movement of 100,000 BTC—amounting to nearly 5% of Bitcoin’s daily trading volume—has captured market attention. While the firm has not officially commented on the transfers, the activity mirrors events that have historically triggered market corrections.
For instance, the 2018 sale of Mt. Gox’s holdings caused Bitcoin to drop 30% in a month due to panic-driven retail exits.
The transactions, distributed across 29 wallets, suggest strategic intent rather than hasty liquidation. Independent crypto analyst Symbiote speculated that BlackRock may be capitalizing on record profits or setting the stage for market manipulation.
The comparison to Mt. Gox is particularly notable, as even a smaller sell-off can amplify panic in a bullish market.
Bitcoin has shown resilience above the $100,000 threshold, with bullish sentiment outweighing bearish pressure. However, retail investors remain highly susceptible to FUD, which could lead to exaggerated sell-offs even if BlackRock’s intent is benign.
Historical data shows that BlackRock’s previous significant BTC sell-offs, particularly in 2021 and 2022, were followed by immediate 15-20% corrections. However, these moves eventually stabilized as institutions reentered the market, seeing lower prices as buying opportunities.
This situation underscores the need for caution. While BlackRock’s actions could lead to a short-term dip, Bitcoin’s underlying fundamentals remain strong. Yet, retail investors who recently joined the BTC bandwagon could succumb to FUD and sell their positions, further exacerbating the selling pressure against the token.
Bulls Holding BTC Price Above $100K
The BTC USD pair has managed to stay above the $100,000 mark despite a dip below it on Dec. 12. However, a lack of definitive movement in either direction suggests that the hype driving BTC prices has left the market, and now participants await some definitive cues.
The change in SEC leadership in Jan. 2025 could attract buyers to the market. Until then, news like BlackRock distributing a boatload of its BTC holdings could plummet the price of BTC.
BTC USD daily price chart with RSI. Source: Tradingview
Now, traders are waiting for a decisive restart of the uptrend before entering the market. Bulls seem to defend the 20-day EMA (red) trendline support near $97,000. Breaching the dynamic support could send Bitcoin price to the 50-day EMA (purple) support near $89,000.
Breaching the immediate support might force BTC’s price to test support near $75,600 before recovering.
On the other hand, holding above $100,000 could provide Bitcoin’s price the impetus to rally to the resistance near $111,100. Breaking and consolidating above the immediate resistance might help the token rally to the resistance near $126,600 before retreating.
However, the consolidation phase could last until 2025 unless BTC finds some new cues to fuel its bull run.
The relative strength index for Bitcoin remained neutral, with a score of 62.76 on the daily charts.
