The price of Bitcoin remains stable beneath $96,000 as BlackRock's $150 billion fund adopts blockchain technology, which may indicate a forthcoming bullish trend.
The Bitcoin price outlook for Thursday, May 1, shows a sense of cautious optimism as BTC struggles to break through the $96,000 resistance level for the third consecutive day.
Bitcoin stalls at $95,500 as resistance holds for third day
On Wednesday, Bitcoin (BTC) encountered strong resistance at the $96,000 level, which interrupted its short-term upward trend and established a sell-wall at $95,500 for the third consecutive session.
The cryptocurrency remains close to its all-time highs but has found it challenging to achieve a significant breakout this week.
Market observers are looking for a sustained advance beyond $96,000 as a catalyst for renewed bullish activity; however, declining trading volume and macroeconomic concerns have negatively impacted BTC's price movements.
As of the close on Wednesday, Bitcoin $BTC recorded a slight increase of 0.4% over the past 24 hours and a 0.7% rise for the week, as reported by CoinGecko.
The total market capitalization of cryptocurrencies remained at $3.04 trillion, indicating a daily gain of 2.8%, although the majority of this momentum is primarily seen in Bitcoin and Ethereum.
Bitcoin's market dominance is approximately 62%, while alternative cryptocurrencies are trailing behind following the US SEC's postponement of decisions on ETF applications until June.
BlackRock moves to tokenize $150B Treasury Fund via blockchain infrastructure
BlackRock has submitted a filing to the U.S. Securities and Exchange Commission (SEC) to establish a blockchain-based digital share class for its $150 billion Institutional U.S.
Treasury Money Market Fund. This new share class, referred to as DLT Shares, is designed to utilize blockchain technology for maintaining records and enabling real-time tracking of ownership on a distributed ledger.
The filing indicates that the fund will not utilize blockchain technology for portfolio management or cryptocurrency holdings.
Instead, DLT Shares will be designed to replicate existing shares while employing blockchain to enhance settlement transparency and minimize administrative challenges.
This offering will be restricted to institutional investors, with a minimum investment requirement of $3 million.
BNY Mellon has been designated as the main infrastructure partner, tasked with the integration and upkeep of the blockchain-based recordkeeping system.
This advancement represents a notable progression in the financial sector's gradual embrace of blockchain—not via digital assets, but through tokenized infrastructure that bolsters traditional systems.
While the product does not provide exposure to cryptocurrencies, its potential impact on market sentiment is significant.
The institutional adoption of blockchain-enabled infrastructure may validate the broader cryptocurrency ecosystem, potentially benefiting assets such as Bitcoin through narrative alignment and technological endorsement.
Looking Ahead: How will Blackrock’s $150B fund impact BTC price
The near-term forecast for Bitcoin appears cautiously optimistic, dependent on a decisive breakthrough above the $96,000 resistance level.
BlackRock's initiative to integrate blockchain technology into one of its largest funds is expected to have a favorable impact on institutional investors and stakeholders in digital assets, even without direct exposure to cryptocurrencies.
If Bitcoin sustains support above $94,000 and achieves a high-volume breakout beyond $96,000, the target of $100,000 may become attainable in the upcoming weeks.
Provided there are no significant macroeconomic disruptions or regulatory challenges, the adoption of blockchain by established financial institutions like BlackRock could create a subtle yet influential bullish sentiment.
Bitcoin price forecast today: Bulls eye breakout above $96K as RSI overheats, KC bands widen
At the time of reporting, the price of Bitcoin was $94,280, having formed a narrow-bodied candle that indicates a continuation of its consolidation just beneath the $95,500 resistance level.
The price movements observed over the last five sessions demonstrate a strong resistance just below $96,000, where selling pressure consistently hampers upward movements.
Importantly, Bitcoin is situated within the upper limits of the Keltner Channel bands, with the upper boundary at $95,414 serving as the immediate resistance point.
A breakout and subsequent close above this threshold may initiate new momentum towards the $98,000 to $100,000 range.
The current forecast for Bitcoin's price appears optimistic, bolstered by the relative strength index (RSI) reading of 88.35, which indicates a strong overbought condition.
Historically, an RSI exceeding 85 suggests ongoing buying momentum rather than an impending downturn, particularly when supported by stable or increasing trading volumes, as observed in this instance.
The RSI moving average (RSI MA) at 76.60 provides a delayed yet solid bullish indication.
Although trading volume is relatively low at 185 BTC, it has remained steady, showing no indications of a panic selloff.
Should Bitcoin's price once again fail to breach the $95,400 upper Keltner Channel band, a corrective retracement towards the $90,500 midline may be anticipated.
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