Bitcoin price today: $67,000
Demand for bitcoin appears to be increasing, according to a CryptoQuant report. BTC’s performance since the fourth halving is very similar to that of the third halving, when prices increased sharply. US Bitcoin Spot ETFs recorded a third consecutive day of inflows on Wednesday.
Bitcoin (BTC) is trading slightly lower around $67,000 on Thursday after a 7.5% rally since Monday. CryptoQuant’s weekly report supports continued upward momentum for the major crypto-asset, highlighting increasing demand for BTC in a week in which US-listed spot ETFs registered inflows for three consecutive days. Rising demand and reports suggesting that BTC price could rise further fueled optimism around the “Uptober” narrative, as October has traditionally been a strong month for investors.
Demand for bitcoin seems to be returning
CryptoQuant, an on-chain and market data analysis firm, published a weekly report on Wednesday highlighting the return of Bitcoin demand.
The report indicates a resurgence in demand for Bitcoin, with current apparent demand reaching 177,000 BTC. As shown in the chart below, this has historically preceded significant price rallies to new record highs in 2020-2021 and 2024, suggesting that a further increase in demand is essential for a sustainable move to new all-time highs.
Bitcoin apparent demand chart. Source: CryptoQuant
According to the analyst, other major investors continue to build up Bitcoin. The total balance of Bitcoin whales, excluding exchanges and mining pools, expanded compared to the previous year and grew to 670,000 Bitcoin. Additionally, holdings growth is above its 365-day moving average, a positive sign for prices.
Bitcoin 1-year change in Whales Holdings chart. Source: CryptoQuant
Finally, the report explains that Bitcoin remains in a period of positive seasonal performance. The price of Bitcoin typically does well in Q4, when in a bull cycle and especially in a halving year. In the halving years of 2012, 2016 and 2020, the price of Bitcoin increased by 9%, 59% and 171% respectively. So far, in the fourth quarter of 2024, Bitcoin is behaving very similarly to 2016 and 2020.
Bitcoin Cumulative Return Index on Halcing Years chart. Source: CryptoQuant
The “Guide to Crypto Markets,” a joint report by Coinbase Institutional and Glassnode published Wednesday, also explains that BTC’s performance since the fourth halving most closely resembles the performance seen after the third halving, when prices went sideways did for a few months before it moved sharply. higher within a year of the event.
BTC price performance chart. Source: Glassnode
Looking at the US-listed spot Bitcoin ETFs, institutional demand for Bitcoin is showing signs of strength this week. According to Coinglass data, the ETFs recorded a third straight day of inflows, totaling $1.38 billion between Monday and Wednesday and $456.90 million of that on Wednesday alone. Studying the ETF flow data can be useful in observing institutional investors’ sentiment. If the magnitude of inflow continues or increases, it will indicate a rise in demand for Bitcoin, further contributing to its price rise.
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Total Bitcoin Spot ETF Net Inflow chart. Source: Coinglass
Bitcoin Price Prediction: Looking at $70,000
Bitcoin price broke above the $66,000 resistance level on Tuesday and is up 2.42% through Wednesday. At the time of writing on Thursday, it is trading slightly lower at around $67,000.
If the $66,000 level holds as support, BTC will continue its ongoing rally to retest its July 29 high of $70,079.
The moving average convergence divergence (MACD) indicator is further supporting Bitcoin’s rise after posting a bullish crossover on the daily chart on Monday. The MACD line (blue line) moved above the signal line (yellow line), giving a buy signal. It also shows rising green histogram bars above the neutral line of zero, suggesting increasing upward momentum.
The Relative Strength Index (RSI) in the daily chart is trading at 65, which is pointing downward, reflecting the decline in the bullish momentum. If it continues to fall to the neutral level of 50, it will be a sign of a deeper correction.
BTC/USDT Daily Chart
If BTC fails to find support around the $66,000 level and close below it, Bitcoin could extend the 6% decline and retest its $62,000 support level, which corresponds to the 61.8% Fibonacci retracement level at $62,059 (drawn from July August high of $70,079) low of $49,084).
Bitcoin, altcoins, stablecoins FAQ
The largest cryptocurrency by market capitalization, Bitcoin is a virtual currency designed to serve as money. This form of payment cannot be controlled by any person, group or entity, eliminating the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also consider Ethereum a non-altcoin because it is from these two cryptocurrencies that forking takes place. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and thus an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset they represent. To achieve this, the value of any one stablecoin is tied to a commodity or financial instrument, such as the US dollar (USD), with its supply regulated by an algorithm or demand. The main purpose of stablecoins is to provide an on/off for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value, as cryptocurrencies are generally subject to volatility.
Bitcoin dominance is the ratio of Bitcoin’s market cap to the total market cap of all cryptocurrencies combined. This gives a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically occurs before and during a bull run, in which investors turn to invest in relatively stable and high market cap cryptocurrency like Bitcoin. A drop in BTC dominance usually means investors shift their capital and/or profits to altcoins in search of higher returns, which usually triggers an explosion of altcoin rallies.
Disclaimer for Uncirculars, with a Touch of Personality:
While we love diving into the exciting world of crypto here at Uncirculars, remember that this post, and all our content, is purely for your information and exploration. Think of it as your crypto compass, pointing you in the right direction to do your own research and make informed decisions.
No legal, tax, investment, or financial advice should be inferred from these pixels. We’re not fortune tellers or stockbrokers, just passionate crypto enthusiasts sharing our knowledge.
And just like that rollercoaster ride in your favorite DeFi protocol, past performance isn’t a guarantee of future thrills. The value of crypto assets can be as unpredictable as a moon landing, so buckle up and do your due diligence before taking the plunge.
Ultimately, any crypto adventure you embark on is yours alone. We’re just happy to be your crypto companion, cheering you on from the sidelines (and maybe sharing some snacks along the way). So research, explore, and remember, with a little knowledge and a lot of curiosity, you can navigate the crypto cosmos like a pro!
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