Bitcoin Demand Experiences Accelerated Growth: Is a Bull Run Imminent?

Cryptonews Nia Simpson October 13, 2024

Bitcoin Demand Experiences Accelerated Growth: Is a Bull Run Imminent?

On-chain data reveals that Bitcoin demand has reached its highest monthly growth rate since April 2022, raising speculation about a possible new bullish trend. Despite this increase, selling pressure continues to outpace buying momentum. Currently, Bitcoin is priced above $63,000, reflecting a modest increase over recent days.

Recent on-chain data indicates a significant resurgence in demand for Bitcoin, the foremost cryptocurrency, marking its most rapid pace of growth since April 2022. This prompts speculation on whether such an increase in demand could initiate a new bullish trend for Bitcoin. CryptoQuant’s head of research, Julio Moreno, shared insights via the X platform, asserting that the current monthly demand for Bitcoin is at its height since April. This observation is based on the “apparent demand” metric, which assesses the difference between the daily total Bitcoin block subsidy and the daily change in Bitcoin holdings of one year or longer. Essentially, it reflects the circulating Bitcoin that has garnered market interest. Subsequent to a decline in apparent demand traced back to April, when the Bitcoin price was around $70,000, market activity has shown periods of weakness, leaning towards negative demand trends over the subsequent six months. However, a report from CryptoQuant on October 2 suggests that Bitcoin may be entering a seasonally advantageous period as the fourth quarter of halving years traditionally exhibits bullish tendencies. Notably, increasing demand aligns with the prerequisites for reignition of a Bitcoin price increase. With the current demand growth echoing levels from April, there exists a strong possibility that Bitcoin’s price could elevate significantly, potentially reaching its all-time high with projections toward late 2024. However, Moreno cautions that the momentum of demand is not wholly positive. He noted that, despite easing in the levels of selling relative to buying, the current state remains imbalanced, indicating that selling pressure still exceeds buying appetite. As of now, Bitcoin’s price hovers just above $63,000, reflecting a slight increase of 1.1% over the past 24 hours and a more considerable rise exceeding 2% over the week. This stabilization above the $63,000 level may signal a potential shift in market sentiment.

The focus of this analysis is the ongoing observation and interpretation of Bitcoin’s market dynamics through on-chain data, particularly the metric of apparent demand. Recent trends have shown a marked decline in demand, influencing the cryptocurrency’s price performance. Historically, the final quarter of halving years suggests a generally bullish environment for Bitcoin; hence, the current resurgence in demand could have significant implications for future price trends. The study of these demand metrics serves as a crucial factor in predicting market behavior and potential investment opportunities in the cryptocurrency space.

In summary, the latest on-chain data indicates a resurgence in Bitcoin demand, akin to levels experienced in April. While this growing demand may signal a potential bullish phase for Bitcoin, the momentum remains tempered by a lingering imbalance in buying versus selling. Current market activity shows Bitcoin’s price stabilizing above $63,000, which may set the stage for upward movement. Continuous monitoring of demand trends will be essential to ascertain the likelihood of a sustained price increase in the near future.

Original Source: bitcoinist.com