Source : crypto-news-flash.com
- Institutional crypto funds registered $154 million in inflows last week despite the recent market correction.
- Bitcoin still trades under $60K but technical analysis and events indicate a possible impending reversal of the bearish narrative.
The crypto market experienced a rough one last week, as their leader Bitcoin (BTC), continued to pull further under the $60K mark. Despite the drop, institutional investors have expressed bullish sentiments, as they increase their hold in crypto investment products.
According to the latest report from CoinShares, investment products tracking digital assets saw inflows worth $154 million last week. Bitcoin funds registered inflows totaling $114.4 million, while Ether (ETH) registered inflows of $12.6 million. Most other altcoins registered inflows, apart from Cardano and Tron which saw minor outflows of $2.1M ad $0.7M, respectively. Grayscale, the world’s largest crypto asset manager by assets under management (AUM), recorded a near $52B AUM last week.
Crypto dip presents an investment opportunity
Notably, in the year-to-date charts, institutional investors have placed over $6.6 billion in Bitcoin products. Ethereum investment products have seen $1.17 billion injected over the same period. Collectively, more than $9.2 billion was allocated to the entire crypto industry. Overall, this indicates a positive investor outlook for digital assets despite their recent price pullback.
October, or ‘Uptober,’ as crypto enthusiasts like to call it, was a record-breaking month for Bitcoin funds. Bullish sentiments went high as the US approved two BTC exchange-traded funds (ETFs) from ProShares and Valkyrie. In the weeks that followed, BTC surged in tandem, establishing a new all-time high teasing $70K.
At press time, BTC per our data was exchanging hands at $56,006.01, having lost 2.5 percent in 24 hours. The crypto king has also shed off 12.3 percent this past week. ETH was trading at $4,109, down 10.3 percent over a week. Investors, however, seem to be following the ‘Buy The Dip’ mantra, unfazed by this bullish momentum.
BTC price analysis
Presently, Bitcoin is struggling with upside momentum as it falls back under the $57,000 level. Nonetheless, a technical indicator (Momentum Reversal Indicator), shows that the asset is about to turn around its recent bearish narrative. Resistance is likely at three points: the Nov. 20 low of $57,350, the Oct. 28 low of $57,807, and the Oct. 23 low of $59,595. Thereafter, BTC would be headed to the 50-day Simple Moving Average (SMA) of $60,575.
Breaking past the $60K mark might prove to be an uphill climb. However, BTC’s potential recovery may be aided by the buyers who currently outnumber the sellers. Buyers have been dominating based on the Arms Index (TRIN) – a gauge for overall market sentiment.
Additional events indicating crypto positivity include El Salvador’s plan to launch a Bitcoin City backed by a $1B Bitcoin bond. New York also plans to get its digital coin similar to Miami’s MiamiCoin. Mayors of these cities have also led public employees in planning to take their paychecks in Bitcoin.