Bitcoin bounces back slightly, trading above $58,000 after a weekend dip

• Metaplanet and SBI VC Trade announce a strategic partnership to improve Bitcoin trading, storage and management.
• Lookonchain data shows that the Bitcoin Spot ETF saw $45.53 million in net outflows on Monday.
• Santiment’s data shows that wallets holding more than 10 BTC have accumulated an additional 33,651 Bitcoins since June 2nd.
• VanEck predicts that Bitcoin could reach up to $2.9 million per coin by 2050.

Bitcoin (BTC) is trading around $59,000 on Tuesday after a slight recovery the day before. However, this rally could be short-lived as it approaches a crucial resistance barrier. Institutional interest is growing, driven by VanEck’s bullish Bitcoin forecast, a strategic partnership between Metaplanet and SBI VC Trade, and growing wallet holdings. Despite these developments, price action remains weak and the Bitcoin Spot ETF posted a net outflow of $45.53 million on Monday.

Daily Market Summary: Few signs of optimism

• Metaplanet Inc., a Japanese investment and consulting firm, and SBI VC Trade Co. Ltd., a division of the SBI Group, announced a strategic partnership to improve Bitcoin trading, storage and management, focusing on safety, security and regulation. compliance, starting from Monday.

This alliance supports Metaplanet’s “Bitcoin First, Bitcoin Only” strategy, focusing on Bitcoin scarcity and apolitical monetary policy. Metaplanet is accumulating Bitcoin through debt and equity financing and currently holds around 360 BTC.

“Through our corporate client service SBIVC for Prime, we focus on supporting and assisting cryptocurrency trading, storage and operation as well as Web3 related businesses. In cooperation with Metaplanet, SBI Group was highly rated for 1) safety and security, 2) use of leveraged trading backed by crypto assets, and 3) exemption from mark-to-market fee at the end of the period.” the firm SBI VC Trade said in its announcement.

• VanEck, an asset management company with positions in the largest cryptocurrency, predicts that Bitcoin could reach as much as $2.9 million per coin by 2050. This bullish long-term outlook is supported by Bitcoin’s cap of 21 million coins, which creates a deficit.

“It is conceivable that by 2050 Bitcoin could be used to settle 10% of the globe’s international trade and 5% of the world’s domestic trade. This scenario would result in central banks holding 2.5% of their assets in BTC. Using assumptions about global growth, investor demand for BTC, and Bitcoin turnover, we apply a velocity of money equation to suggest a potential price of $2.9 million per Bitcoin, which translates to a total market cap of $61 trillion USD. Applying our existing framework for Ethereum L2 valuation, we estimate that Bitcoin L2 could collectively be worth $7.6M, roughly 12% of the total value of BTC.” VanEck said in the blog post.

• Sentiment’s BTC data shows wallets holding at least 10 BTC and their total collective holdings. In the last three months, it has looked quite strong. These wallets have accumulated an additional 33,651 Bitcoins since June 2nd, a 0.21% increase in this relatively short time.

However, there is some slight concern regarding the volume of stablecoin holdings from key stakeholders between $100,000 and $10 million in USDT or USDC that have sunk over this period. This means that during this period there was a fair amount of exchange between stables and traditional crypto.

Bitcoin wallet holding chart

Bitcoin Stablecoin Chart

Technical Analysis: BTC Retest Resistance Level

Bitcoin price is retesting its 50% price retracement level at $59,560 (drawn from a late July high to an early August low) after recovering 3.5% on Monday. At the time of writing on Tuesday, it is down slightly by 0.35% to $58,899.

If $59,560 holds as resistance, Bitcoin could drop 6% from current trading levels to retest the daily support level at $56,000.

The Relative Strength Index (RSI) and the Awesome Oscillator (AO) on the daily chart are slightly below their neutral levels of 50 and zero, respectively. Both indicators suggest that neither the bulls nor the bears are in control.

BTC/USDT Daily Chart

In a positive scenario, Bitcoin price could break the $59,560 resistance and close above $62,019, the 61.8% Fibonacci retracement level. In this case, the bearish thesis will be invalidated and BTC could extend the positive move by 5.5% to revise its daily resistance level at $65,379.