Bitcoin News Today: Bitcoin Tests $123.8K Resistance Amid Abu Dhabi's $681M ETF Holdings

Bitcoin’s price is currently testing a key resistance level around $123.8K, as market participants closely monitor whether the cryptocurrency can break through or face a potential pullback. At the same time, institutional exposure to Bitcoin has risen, particularly through investments by Abu Dhabi’s sovereign wealth funds, which hold approximately $681 million in Bitcoin ETFs [1]. This exposure reflects a growing appetite among large institutional players for digital assets, despite the inherent volatility in the cryptocurrency market.

According to Cas Abbé, an Abu Dhabi-based analyst, Mubadala, one of the region’s key sovereign wealth funds, holds 8.72 million shares in the Bitcoin ETF (IBIT), valued at $534 million. Another fund under its management, Al Warda, holds an additional 2.41 million shares, worth $147.5 million [1]. Together, these holdings represent a strategic and long-term commitment to Bitcoin, with no significant changes in position since May. This stability indicates that the funds are adopting a “diamond hands” approach, prioritizing long-term gains over short-term fluctuations.

The institutional backing from Abu Dhabi comes amid a market that is showing early signs of weakening momentum. According to analysis from Zynweb3, while Bitcoin’s current momentum remains slightly positive at +0.12, the overall structure has turned bearish, with a reading of -0.47. This divergence suggests that while the price remains near the resistance level, the underlying strength of the market is waning [2]. Analysts are now watching for confirmation signals in the coming trading sessions to determine whether the price will break through the $123.8K resistance or retreat.

Bitcoin’s current price stands at approximately $119,058, with a 24-hour trading volume of over $93 billion. However, the price has dipped by 2.26% in the past 24 hours, signaling a cautious market sentiment [1]. If the momentum continues to deteriorate, the price could fall toward the next support level at $113.6K. This potential downward movement highlights the fragile balance in the market, where buyers defending key levels face increasing pressure from sellers.

The market is now in a critical decision-making phase, with the next few trading sessions likely to provide clarity on Bitcoin’s trajectory. The combination of strong institutional exposure and ongoing price uncertainty presents both opportunities and risks for investors. As one analyst notes, the coming days will be crucial in determining whether Bitcoin can overcome its resistance and continue its upward trend or face a more pronounced correction [2].

Sources:

[1] title: Bitcoin Faces Key Resistance at $123.8 as Abu Dhabi Holds $681M Exposure. url: https://coinmarketcap.com/community/articles/689f157c80691323f3902257/

[2] title: Bitcoin Price Momentum Analysis. url: https://twitter.com/cas_abbe/status/1956042878292996310