Key Points
- Bitcoin’s demand has surged, leading to a price rally and potential to reach the $70,000 mark.
- US spot exchange-traded funds (ETFs) and large investors continue to buy Bitcoin, boosting its price and stability.
Bitcoin has experienced a significant increase in demand after a period of subdued activity since May. Last week alone, it registered a monthly growth of 177,000 BTC. This surge in demand has resulted in a 5% rally in Bitcoin’s price, securing its position above both the 50-day and 200-day exponential moving averages (EMAs).
Current technical indicators suggest that the bullish phase may continue, offering further upside potential for Bitcoin. If it breaks above Wednesday’s high of $68,380, the cryptocurrency could potentially approach the $69,000 mark. Overcoming this resistance level could set Bitcoin on the path to the $70,000 threshold.
Potential Impact Factors on Bitcoin’s Price
The Federal Reserve’s interest rate path, the upcoming US Presidential Election, and the flow trends within the US BTC-spot ETF market could all have a significant impact on the BTC price. However, if the price dips below the $65,000 and $64,000 support levels, it might indicate a downturn toward the 50-day EMA, potentially reversing the current bullish trend.
Adding to the positive outlook, Bitcoin’s 14-day Relative Strength Index (RSI) stands at 67.01. This suggests 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 played a crucial role in pushing Bitcoin to a ten-week high of over $67,800.
ETFs and Whales Boost Bitcoin’s Growth
US spot exchange-traded funds (ETFs) have consistently bought Bitcoin, with an average of 9,000 BTC added daily in early 2024. This steady demand has helped push Bitcoin’s price to new peaks. Data shows that US BTC ETFs saw an impressive $458.5 million inflow on Wednesday, with BlackRock’s IBIT accounting for $393.4 million of that amount.
Large investors, also known 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 steady 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 sharp rise of 45 percentage points over the past week. At the same time, 72% of bettors believe Bitcoin will set a new record in 2024, reflecting a 23-point jump in just one week.
In the wider crypto space, Dogecoin 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. Musk’s support for the Department of Government Efficiency on X has further boosted investor interest.
