Meanwhile,

as Bitcoin rebounded to the $119,000 level, some major players in the cryptocurrency

market were quick to take profits after recent large price movements.

Investment firm Ark Invest, led by Cathie Wood, sold 34,207 shares of Coinbase

on Tuesday, amounting to approximately $13.3 million. The company also sold $8.7

million worth of Bitcoin from its own spot Bitcoin ETF.

Shortly after selling, the firm issued a statement noting that none of Ark Invest's investment strategies allow a single asset to exceed 10% of a fund's portfolio. This is necessary to maintain portfolio diversification, meaning Ark will likely continue adjusting its holdings if the value of certain assets rises or falls significantly relative to others in the fund.

While this approach may appear conservative, it is a fundamental principle of risk management in portfolio investing. Diversification is known to reduce volatility and potential losses by spreading capital across different assets and sectors. In Ark Invest's case, strict adherence to this principle allows the company to respond more flexibly to changes in market conditions and helps protect the interests of its investors. Moreover, actively rebalancing portfolio holdings is an integral part of Ark's strategy, which focuses on innovative and fast-growing companies.

According to the firm's latest data, COIN (Coinbase) is currently the second-largest holding in its ARKW fund, with a weight of 7.9%, valued at approximately $172.8 million. Robinhood is the largest holding in ARKW, representing 8% of the fund, valued at $175.5 million.

As for the Bitcoin ETF, as previously mentioned, Ark Invest also sold 225,742 shares of its ARKB Bitcoin ETF from the same Next Generation Internet fund, amounting to $8.7 million. This occurred just one day after Bitcoin hit a new all-time high on Monday, surpassing $123,000, and then fell below $116,000 on Tuesday before rebounding.

The net outflow from Ark Invest's ARKB fund on Tuesday totaled $6.2 million, while the total net inflow across all spot Bitcoin ETFs for the day amounted to $403.1 million. The leader was BlackRock's IBIT, with $416.3 million in inflows.

Trading recommendations

Bitcoin Buyers are currently targeting a return to $119,600, which opens a direct path to $120,700. From there, a move to $122,000 is within reach. The ultimate target is the recent high around $123,000—a breakout above this would confirm a strengthening bullish trend. In case of a decline, buyers are expected around $118,500. A drop below this zone could quickly push BTC down to $117,300, with the final support level near $116,400.

Ethereum A clear hold above $3,169 paves the way toward $3,208, with an ultimate target at the high of around $3,265. A breakout above this level would signal a return of buyer interest. If ETH falls, support is expected at $3,116. A break below that area could drag Ethereum down to $3,072, with a final downside target around $2,985.

What's on the chart

• Red lines represent support and resistance levels, where price is expected to either pause or react sharply.
• The green line shows the 50-day moving average.
• The blue line is the 100-day moving average.
• The lime line is the 200-day moving average.

Price testing or crossing any of these moving averages often either halts movement or injects fresh momentum into the market.