After a period of subdued activity since May, Bitcoin (BTC) demand has surged, with a remarkable monthly growth of 177,000 BTC recorded just last week. This significant uptick in demand has propelled Bitcoin's price to rally by 5%, maintaining its position above both the 50-day and 200-day exponential moving averages (EMAs).
Technical indicators suggest that this bullish phase may persist, offering further upside potential for the leading cryptocurrency. A breakout above Wednesday’s high of $68,380 could set the stage for Bitcoin to approach the $69,000 mark. If this resistance level is overcome, the next target could be for BTC to reach the $70,000 threshold.
Several critical factors could impact Bitcoin’s price trajectory, including the Federal Reserve’s interest rate path, the upcoming U.S. Presidential Election, and the flow trends within the U.S. BTC-spot exchange-traded fund (ETF) market. Conversely, a dip below the support levels of $65,000 and $64,000 might signal a downturn, potentially reversing the current bullish trend.
Adding to the positive outlook, Bitcoin’s 14-day Relative Strength Index (RSI) stands at 67.01, indicating that BTC could climb to the $69,000 resistance level before entering overbought territory. This RSI reading is the highest since late April and has contributed to Bitcoin's recent surge to a ten-week high of over $67,800, according to a report by CryptoQuant led by analyst Julio Moreno.
The growing interest in Bitcoin can be attributed in part to the activity surrounding U.S. spot ETFs, which have consistently purchased Bitcoin, averaging around 9,000 BTC added daily in early 2024. This steady demand has played a crucial role in pushing Bitcoin’s price to new heights. Data from SoSoValue shows that U.S. BTC ETFs saw an impressive $458.5 million inflow on Wednesday, with BlackRock’s IBIT accounting for $393.4 million of that amount.
Additionally, large investors—often referred to as whales—continue to accumulate Bitcoin, further boosting confidence in the cryptocurrency’s future. These major holders, excluding exchanges and miners, now control 670,000 BTC, surpassing the 365-day average. This consistent accumulation signals optimism for Bitcoin’s price stability and long-term growth.
Market sentiment remains positive, with Polymarket predicting a 64% chance of Bitcoin hitting $70,000 in October. This marks a significant rise of 45 percentage points over the past week. Furthermore, 72% of bettors believe Bitcoin will set a new record in 2024, reflecting a 23-point jump in just one week. These figures highlight growing optimism about Bitcoin’s future prospects.
In the broader crypto space, Dogecoin also saw a strong 17% gain on Wednesday during Asian trading. This rise followed news of Elon Musk’s $75 million donation to a Trump-backed committee, with Musk’s support for the Department of Government Efficiency on X further boosting investor interest.
With a surge in demand, positive market indicators, and ongoing support from ETFs and whale investors, Bitcoin appears poised for a potential climb towards the $70,000 mark. As market sentiment remains optimistic, investors will be closely monitoring Bitcoin’s performance and any developments that may influence its price trajectory in the coming weeks.
October 2024, Cryptoniteuae