Bitcoin, $1.2 Billion Sell Bomb...Is the Next Step an Unconditional Surge?

▲ Bitcoin (BTC), decline, bear market / ChatGPT generated image

The global virtual asset market has entered a decoupling phase from the New York stock market. As the US stock market reached an all-time high, a massive off-exchange sell-off bomb from institutional spot ETFs erupted. Bitcoin, with its strong capital absorption capacity, defended against further plunges.

On May 27 (local time), the cryptocurrency specialized YouTube channel Altcoin Daily stated in an uploaded video that a dark pool block deal sell-off worth $1.29 billion was executed through BlackRock's Bitcoin (BTC) spot ETF product, IBIT. This massive sell-off pushed Bitcoin's price below $75,000. Market traders characterized this transaction as one of the largest institutional selling pressures in history.

Despite the negative news from Wall Street, the spot market's defense wall remained robust. Bloomberg Senior ETF Analyst Eric Balchunas assessed that the market is effectively absorbing the selling pressure. In fact, since October 10, when the market was considered to have entered a stagnation phase, a total of 4.45 million BTC has moved and been distributed, yet Bitcoin has still maintained the $75,000 level.

Technical trends and the positions of professional institutions also support a continued upward scenario. Whale investors on Bitfinex are accumulating Bitcoin by building large long positions. Bitcoin recently successfully completed a backtest of a key support level. As the S&P 500 and Russell 2000 indices have already settled into an expansion phase, Bitcoin is also highly likely to unleash a concomitant rally.

The current market trend shows different indicator flows from past cyclical bear market formulas. Bitcoin's monthly Relative Strength Index (RSI) plummeted to a recessionary bottom, but the SuperTrend indicator still maintains a long position. Bitcoin also withstood the geopolitical crisis caused by the outbreak of the Iran war in early March. If the May monthly candle successfully closes higher in the remaining 5 days, it will be evidence that Bitcoin has entered a new bullish paradigm.

Cathie Wood, CEO of ARK Invest, appeared on Fox Business and maintained her forecast that Bitcoin's price would surge from a base of $750,000 to a maximum of $1.25 million within the next five years. Wood explained that as asset transfers intensify, gold is being replaced by Bitcoin. Furthermore, it is analyzed that if the US cryptocurrency market structure bill and the GENIUS stablecoin regulation bill pass, institutional funds will flow in, driving a golden cross in altcoin market dominance and a fall bull market.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*