BTC dip triggers $329 million inflow to BlackRock ETF
BTC dip triggers $329 million inflow to BlackRock ETF
Bitcoin has experienced a sharp pullback at the start of the week, with its price dropping 3.8% from $69,300 to a low of $66,740 on October 21.
This dip marks the continuation of a broader decline after Bitcoin hit an 11-week high, and it highlights ongoing struggles for buyers to break above the bearish trendline resistance that has capped its upward movement since May.
In response to the price drop, BlackRock’s iShares Bitcoin Trust (IBIT) recorded a massive $329 million inflow on October 21, marking the third time in four trading days that IBIT has seen over $300 million in new capital. This inflow has pushed IBIT’s total net inflows above the $23 billion mark, solidifying its position as the leading Bitcoin exchange-traded fund (ETF) in the market. Fidelity’s Wise Origin Bitcoin Fund (FBTC) also saw a smaller inflow of $5.9 million on the same day, while other spot Bitcoin ETFs recorded negative or zero flows.
Bitcoin market sentiment and technical analysis
From a technical standpoint, Bitcoin’s price has been trapped below a stubborn bearish trendline resistance that has acted as a ceiling since its all-time high in May. The recent 3.8% dip, which pushed the price to intraday lows around $66,550, highlights short-term bearish momentum driven by aggressive selling early in the week.
However, the dip also brought Bitcoin into oversold conditions, as indicated by the divergence between its Relative Strength Index (RSI) and price. This suggests that short sellers may be losing steam, opening the door for a potential bullish reversal in the near term. Bitcoin has already started to recover slightly from its Monday low, rising to around $66,600 as of today.However, some traders, like Emperor, expect a deeper pullback toward the $62,000 level in the short term.
With total net inflows across all spot Bitcoin ETFs reaching $21.2 billion, Bitcoin remains a highly attractive investment, despite short-term corrections. If the bulls can sustain upward momentum, a retest of $70,000 may be on the horizon in the coming weeks.
Bitcoin market cap reaches a new milestone at $1.35 trillion. Experts suggest that it can significantly affect wealth distribution.
