Can BTC break the $62,000 barrier?

• Bitcoin price is rising this week so far, but remains in its broad consolidation zone between $57,000 and $62,000.
• Data Nerd and Lookonchain show that institutions are piling up as some whales deposit BTC into exchanges.
• U.S. spot Bitcoin ETFs saw four straight days of modest inflows this week, totaling $254.4 million.
• Defunct exchange Mt.Gox transferred 13,265 BTC, worth $784.20 million, to a new wallet.

Bitcoin (BTC) is trading above $60,000 on Friday, having gained more than 4% this week so far, but fluctuating in a range between $57,000 and $62,000 over the past 15 days. On-chain data shows mixed signs, with institutions hoarding Bitcoin while some whales are selling. In addition, US spot Bitcoin ETFs saw inflows this week, and continued Mt.Gox fund movements could bring volatility to the Bitcoin price in the coming days.

Institutional Investors Hoard BTC, Whales Prepare To Sell

According to data from Data Nerd, Ceffu and Cumberland, an institutional custody solutions company for cryptocurrencies and digital assets, withdrew 246.33 and 300 BTC worth $14.99 million and $18.36 million respectively on Friday of dollars, from the Binance exchange. This indicates that institutions are hoarding BTC as the price of the coin fluctuates between $57,000 and $62,000.

In addition, Lookonchain data shows that a whale wallet deposited 300 BTC worth $18.25 million with a loss on the Binance exchange on Friday.

Mt.Gox fund movements have not yet been transferred to creditors

According to Data Nerd, on Wednesday, the defunct exchange Mt. Gox transferred 13,265 BTC, worth $784.20 million, to a new wallet. This transfer could then be sent to exchanges like Bitstamp, BitGo and Kraken to repay the lenders.

Historically, Lookonchain data shows that the transfer of Mt. Gox of 33,964 BTC worth $2.25 billion on July 30 could have caused the price of Bitcoin to fall from $66,700 to $54,000 in seven days.

Fund Transfer Chart Mt. Gox

The recent Mt.Gox activity has not generated FUD (Fear, Uncertainty, Doubt) among traders as the funds moved have not yet been transferred to lenders. If the transfer goes through, it could contribute to a drop in the price of Bitcoin.

US spot Bitcoin ETFs see modest inflows

Institutional flows have slightly supported the price of Bitcoin this week. US spot Bitcoin ETFs saw four straight days of light inflows this week through Thursday, totaling net inflows of $254.4 million, according to Coinglass data. Net flows can help measure investor sentiment toward Bitcoin, but when they’re small — like this week so far — they’re less meaningful, given that the total Bitcoin reserves held by the 11 U.S. spot Bitcoin ETFs amounts to USD 55.91 billion.

BTC Spot ETF net flow chart

Bitcoin price will face volatility if it crosses the consolidation range

Bitcoin price has remained between $57,115 and $62,066 (the 38.2% and 61.8% Fibonacci retracement levels drawn from the July 29 high to the August 5 low) over the past 15 days. Since Friday, it is trading slightly higher by 1% at $61,060 and nearing the key resistance level at $62,066.

If BTC fails to close above the $62,066 level, it could drop to $57,115 before falling 19% to review the daily support level of $49,917.

On the daily chart, the Relative Strength Index (RSI) is trading slightly above its neutral level of 50 and the Awesome Oscillator (AO) is still trading below its neutral level of zero. Both indicators need to trade significantly below their respective neutral levels for bearish momentum to be sustained.

BTC/USDT Daily Chart

However, if Bitcoin price closes above $62,066, a rally towards the August 2 high of $65,596 would be on the cards as it would set a higher high on the daily chart. This could see the price rise further by 6% to test the weekly resistance at $69,648.