Bitcoin is stretching gains, looking at price action in the past few trading days. At spot rates, buyers are “hungry” and aiming not only to confirm the rally of the past two days but also to close above March 2024 highs of around $74,000. Bitcoin “Golden Cross” Forms The optimism has been confirmed on-chain. On […]
Bitcoin is marching higher, easing past $70,000 and $72,000 in the past two days, sparking a wave of demand. Although prices are moving within a tight range at spot rates, the uptrend remains. While there are pockets of weakness, at least seen earlier today, candlestick formation in the daily and weekly charts point to strength. Is Bitcoin Preparing For A 6X Surge To $462,000? In a post on X, one analyst thinks Bitcoin will not only break above its all-time high at $74,000 but can easily 6X to over $462,000 in the coming sessions. To support this outlook, the analyst said the coin is breaking out above key resistance levels, and Fibonacci extension levels mirror this shift in trend after the Q3 2024 plunge. Related Reading: Bitcoin Needs Daily Close Above $76,000 To Confirm True Breakout: Analyst Based on the analyst’s assessment, historical price action shows that BTC peaks between the 1.618 and 2.272 Fibonacci extension levels. Technical analysts use this tool to project how fast prices will rally or drop based on a given range. If history guides and the Fibonacci extension levels remain valid, applying the same pattern to the current cycle could easily see Bitcoin soar to between $174,000 and $462,000. These two levels mark the extension levels’ lower and upper limits that define past cycles’ peak zone. As bullish as this forecast is, it should be known that the range anchoring any Fibonacci extension is subjective. For this reason, it will change depending on the analyst, meaning potential peaks will shift accordingly. Despite everything, the consensus is that Bitcoin could break and reach new all-time highs in Q4 2024. Taking to X, another analyst said Bitcoin is already within a bullish breakout formation, easing above a descending channel or bull flag. At the same time, prices are breaking above the resistance of a “cup and handle” pattern. Institutions Buying As BTC Recovers If bulls take over, pushing prices higher, the evolution would confirm gains of Q1 2024. Subsequently, it would mark the resumption of bulls, an encouraging development following the 30% drop from March highs. Related Reading: Dogecoin Metrics Reveal Increasing Network Activity – Is DOGE Ready To Break Yearly Highs? Amid this wave of optimism, institutions are also pouring in, getting exposure via spot Bitcoin ETFs. According to SosoValue, there are massive inflows as institutions buy more shares on behalf of their clients. On October 29, spot Bitcoin ETF issuers in the United States bought $870 million worth of shares backed by BTC for their clients. BlackRock’s IBIT received $642 million, pushing their BTC under management to over $24.9 billion. Feature image from DALLE, chart from TradingView
Crypto-based investment products continued their positive streak after recording nearly $1 billion in inflows this week, seemingly fueled by the upcoming US Presidential elections. Bitcoin (BTC) led the positive net flows for the third consecutive week, making October the fourth largest month of crypto investment product inflows on record. Related Reading: US Investors Hold 4.9% […]
Bitcoin has shown robust price action over the past few weeks and is pushing toward the critical $69,500 resistance level, with eyes set on previous all-time highs. A significant shift in market dynamics accompanies this surge, as data from CryptoQuant reveals that American investors now hold 4.9% of the total Bitcoin supply through spot ETFs. […]
Spot Bitcoin ETFs will need to make an average of $301 million in net inflows per day to get it done this week.
The US-based spot Bitcoin ETFs has produced another impressive performance in the past week recording nearly $1 billion in total inflows. Meanwhile, the spot Ethereum ETFs have struggled to maintain a positive form with outflows dominating the market in the same period. Related Reading: Bitcoin Retail lnvestors Remain Cautious Despite Price Gain – Details Spot Bitcoin ETFs Attract $3 Billion In 11 Days Following a splendid performance in October’s third week during which the Spot Bitcoin ETFs registered $2.18 billion in market inflows, these institutional funds retained investors’ interest the following week evidenced by a total weekly inflow of $997.70 million. According to data from ETF tracking site SoSoValue, the Spot Bitcoin ETFs recorded a positive netflow on all weekdays except Tuesday, October 22nd, where they experienced $79.09 million in outflows. Meanwhile, the largest inflows came on Friday, October 25, valued at $402.08 million. Of this figure, The dominant BlackRock’s IBIT attracted $291.96 million as its cumulative net inflows moved to $23.99 billion. In a similar fashion, Fidelity’s FBTC emerged in second place recording $56.95 million inflows, while $33.37 million was invested in Ark & 21 Shares’s ARKB. Other ETFs that contributed to Friday’s gain include Bitwise’s BITB, Grayscale’s BTC, and VanEck’s HODL with respective inflows of $2.55 million, $5.92 million, and $11.34 million. Interestingly, these positive net flows recorded on Friday mean the spot Bitcoin ETFs have now recorded over $3 billion in inflows in the last eleven trading days. Commenting on this development, popular crypto analyst Michaël van de Poppe shared the general excitement of the crypto community as such massive inflows indicate significant institutional interest in Bitcoin. Van de Poppe said: The #Bitcoin ETF has seen an inflow of more than 3 Billion US Dollars since October 10th. 3 Billion US Dollars. That’s a strong sign that we’re about to see the big breakout for #Bitcoin to $100K. As of now, cumulative total net inflows for the Spot Bitcoin ETFs now stand at $21.93 billion, with their total net assets now valued at $65.25 billion which represents 4.93% of Bitcoin market shares. Related Reading: Bitcoin Price To Go ‘Vertical’ Towards $200,000 As Crypto Analyst Points Out Massive Cup And Handle Pattern Ethereum ETFs See Negative Returns Again In other news, the struggles of the spot Ethereum ETF market persist, which saw total outflows of $24.45 million over the past week, marking their 11th week of negative returns since debuting on July 26. Total net assets for these Ethereum ETFs currently stand at $6.82 billion but with a cumulative total net outflows of $504.44 million. At press time, Bitcoin and Ethereum traded respectively at $67,077 and $2,484 following a minor decline in both assets in the past day. Featured image from StormGain, chart from Tradingview
Bitcoin prices are steady above the $66,000 support when writing on October 25. While confidence is high, the coin is still trending below the psychological round at $70,000. It has yet to shake off sellers in early October. Demand For Spot Bitcoin ETFs Shoots To A 6-Month High However, looking at emerging spot Bitcoin ETF […]
Despite the record European inflows, Bitcoin price has been unable to recover above the $70,000 psychological level since July.
The market performance of the spot Bitcoin ETFs (exchange-traded funds) in the United States has been impressive over the last few weeks. Continuing their excellent streak, the crypto investment products closed the previous trading week with their best single-day performance in almost four months. The positive investor sentiment surrounding the spot ETFs seems to have […]
Bitcoin is firm at spot rates, looking at the development in the daily chart. Even so, the downtrend remains, and price action remains within a bearish breakout formation. This outlook follows the dump on September 7 that saw the world’s most valuable coin plunge, approaching the all-important round number, $50,000. Bitcoin Leveraged Positions Building Up Technically, the downtrend remains, especially if bulls can’t unwind the losses of September 7. From an effort-versus-result perspective, the trend set in motion by September 7 will shape the short-term, possibly accelerating the fall below August lows. Related Reading: FET Teeters At Trendline: Will A Breakout Fuel A Run To $1.86? Amid this development, one on-chain analyst notes that there has been a massive accumulation of leveraged positions from March 2024. Though it remains uncertain which direction prices will move, the current state of affairs means sellers have the upper hand. If bulls take over, this would be a massive sentiment boost for BTC bulls, who have had to contend with sharp losses over the past three months. Regardless of the direction, this build-up in leverage position precedes a period of heightened volatility in the coming days. While Bitcoin trends lower, sentiment has taken a hit, explaining the shrinking trading volume over the past two weeks. Since late August, BTC has fallen from around $66,000, losing nearly 20% by last week’s lows. At the same time, volatility is comparatively low and not unlike the state of affairs when BTC turned the corner, sharply expanding from late February before printing fresh all-time highs in mid-March 2024. Average Funding Rate Is Bullish, Will This Change? Interestingly, despite the lower lows, trading data shows that the average funding rate across derivatives exchanges has remained bullish for over a year. This development could be due to the shift in price action that saw the world’s most valuable coin turn the corner, rising from late Q3 2023. The recovery saw BTC shake off weakness and explode to above $70,000 after losses in 2022 that took the coin to as low as $15,800. Related Reading: Bitcoin Rainbow Chart Forecasts An End To Bearish Headwinds With $60,000+ Target For bulls to dominate in the derivatives market, prices must recover steadily. A break above $66,000 and July highs would likely spur demand, lifting the coin above the multi-month resistance at $72,000. Nonetheless, for this to happen, there must be inflows to spot Bitcoin ETFs. Falling prices have accelerated outflows from this product, meaning institutions are playing safe. So far, SosoValue shows outflows of over $169 million for spot Bitcoin ETF issuers in the United States. Feature image from DALLE, chart from Trading View
Looking at the formation in the daily chart, Bitcoin bulls are struggling for momentum. Despite the expansion on August 8, reversing losses of August 5, buyers didn’t follow through, meaning traders are waiting for more confirmation before diving in. The lack of activity in the past few trading days means prices are inside a bull […]
According to the latest data, the world’s largest asset manager BlackRock has added another feather to its cap, becoming the company with the largest crypto exchange-traded fund (ETF) holdings. Here’s How BlackRock’s ETFs Compare To Grayscale’s Funds Crypto intelligence platform Arkham revealed in a post on X that BlackRock has usurped Grayscale to become the […]
Bitcoin buyers might be upbeat after the uptick on August 8. While traders are waiting for a conclusive close above $63,000, confirming bulls of the second half of last week, on-chain data points to risk and traders staying on the sidelines. Traders Cautious: Will The Bitcoin Consolidation Continue? Taking to X, one on-chain analyst said. However, traders are bullish and expecting immediate price expansion; key metrics show that most are more cautious, meaning the uptrend might be delayed. Related Reading: Optimism Suffers 21% Loss – Will On-Chain Activity Regain Investor Trust? One key indicator, the Bitcoin Estimated Leverage Ratio (ELR), a dynamic ratio between the Bitcoin open interest in futures exchanges and the Bitcoin exchange reserves across leading platforms like Binance and Exchange, has been decreasing, recently falling by 1.5%. Usually, whenever the Bitcoin ELR falls, traders are more confident, meaning traders are more risk-on and unwilling to gain more exposure via leveraged positions. While open interest and ELR are falling, the analyst notes that funding rates across leveraged futures platforms remain neutral. This shows that the broader market is balanced. Most importantly, active traders are cautious, adopting a wait-and-see approach, and are mainly hesitant. This state of affairs, the analyst said, could persist until the end of the month as traders wait for clear signals before diving in. Miner Reserve Falling, USDT And USDC Inflow Spikes: Will BTC Rise? The continuous drop in the Bitcoin Miner Reserve is added to this current state of affairs. The decrease comes when miners have been actively selling after the Halving event on April 20. Related Reading: Toncoin Rally Thwarted As TON Slips To $6, Can Bulls Prevent A Bearish Breakdown? As revenue fell due to the halving of miner rewards, weak miners sold to stay afloat. Bitcoin prices tanked by nearly 20% throughout June amid a wave of miner liquidation. It remains to be seen whether prices will bounce higher. However, as long as miners hold fewer coins, supply constraints exist. This development may increase prices if institutions demand more coins via spot Bitcoin ETFs. As prices flatline, there is hope. Over the past few weeks, there have been massive inflows of stablecoins across leading exchanges, averaging $53 billion per day. Demand could be reinvigorated as more USDT and USDC flow into Binance and other competitors. Subsequently, this may spark another wave of higher highs above crucial resistance levels in the coming days and weeks. Feature image from DALLE, chart from TradingView
As visible from their daily chart performances, Bitcoin, Ethereum, and other top altcoins are not free from bearish pressures. Bitcoin and Ethereum, despite being the most liquid, are still down double digits in the past trading week. As bulls push higher, traders closely monitor how prices will react at immediate liquidation zones. Institutions Choosing Ethereum […]
Spot Ethereum ETFs (Exchange-Traded Funds) have registered their first green day after a four-day negative streak. A week after its launch, the massive outflows, led by Grayscale’s Ethereum Trust (ETHE), have outshined the remarkable start of the ETH-based investment products. Ethereum ETFs Performance Outshined By Outflows The approval of spot Ethereum (ETH) ETFs was surrounded […]
Bitcoin price is being driven higher by a new set of bullish catalysts.
Bitcoin’s price surged to a new one-month high near $67,000 as a variety of bullish factors converged to push cryptocurrencies higher.
Bitcoin’s price surged to a new one-month high near $67,000 as a variety of bullish factors converged to push cryptocurrencies higher.
Bitcoin is in an uptrend, but events in the daily chart show pockets of weakness. Though BTC is stagnant, analysts are upbeat, expecting prices to rise in the days to come. Is Bitcoin Ready To Rip Higher: Analyst Says Bulls Are Eyeing $140,000 Taking to X, one analyst has picked out an unusual development: In the weekly chart, the Bitcoin Bollinger Bands (BB) is currently at their tightest level in history. Besides April 2016 and July 2023 events, the Bitcoin BB is tightening, forming a squeeze. Related Reading: Solana Price Could Eclipse $1,400 As Massive Bull Flag Emerges Since BB is a technical indicator used to gauge underlying volatility, what’s happening now should draw traders’ attention. Specifically, prices tend to explode within the next few sessions whenever BB forms a squeeze, compressing to what is now. However, traders should also know that the direction of breakout can be in either direction. In the past, Bitcoin prices rose higher. To illustrate, after the BB squeeze in July, the coin went on to fly in the coming months, breaking $70,000 by March before the coin rose to $73,800. If the past guides, and indeed, prices explode at the end of this squeeze, the analyst predicts Bitcoin flying to $140,000 and even $190,000 in the next few months. The expansion would be a welcomed boost for bulls, considering that prices are now in what the analyst described as a “boring zone.” Any uptick above $73,800 and all-time highs, pushing BTC to six-digit levels, would automatically be in the “banana zone.” Spot BTC ETF Issuers On A Buying Spree, Donald Trump’s Endorsement The confidence that Bitcoin will rip higher is also due to fundamental factors. Despite the current price lull after the refreshing surge earlier this week, spot Bitcoin ETF issuers are buying. BlackRock is spearheading this buying spree. Records show that the asset manager bought over $1 billion of BTC in July. On July 18, one observer noted that they bought 18,600 BTC, or $107 million worth of the coin, on behalf of their clients. According to SosoValue, as of July 19, BlackRock’s IBIT manages over $20 billion worth of BTC. Related Reading: Mass Exodus? Over 672,000 Bitcoin Holders Drop Out Amid Market Shifts Moreover, adding fuel to the fire, it is speculated that if Donald Trump wins the United States presidency, his administration might consider BTC a strategic reserve. While this possibility is debatable for now, it highlights the growing interest from policymakers, which is a massive boost for crypto. Feature image from DALLE, chart from TradingView
Bitcoin defies gravity and is surprisingly resilient against a wave of selling pressure from the Mt. Gox distribution. As of writing, not only is BTC firm above $60,000 but has managed to stand above $62,500, a level of interest especially by traders. So far, Bitcoin remains in an uptrend, and upbeat traders are looking at […]
Bitcoin price displayed surprising strength after various market participants absorbed over 48,000 BTC that the German government sold.
Bitcoin is moving sideways at press time, absorbing the wave of selling over the last week. Even though there are some optimists, the candlestick arrangement in the daily chart points to weakness. This preview, at least from a technical angle, remains as long as prices trend below the round number of $60,000 and the liquidation level at around $66,000. Binance Bought The Bitcoin Dip Amid the recovery, one analyst, pointing to interesting on-chain data, observed that when prices fell last week, some unnamed exchanges were loading up the dip. It is now emerging that Binance, the world’s largest exchange by client count, was actively accumulating. CryptoQuant data shows that Binance increased its reserves by 41,000 BTC over the last bear run when prices corrected from $72,000. Buying on dips is strategic, considering the exchange’s obligation, especially for users seeking to convert other tokens for BTC on the fly instantaneously. Related Reading: XRP Set To Skyrocket 60,000% On Tightest Bollinger Bands Ever: Analyst During this time, Ki Young Ju also noted that “permanent holders,” entities who tend to HODL and not move coins, have been accumulating. These addresses, excluding spot Bitcoin exchange-traded fund (ETF) issuers, exchanges like Binance and Coinbase, or miners, added 85,000 BTC in the last month. During this time, spot Bitcoin ETF issuers decreased their holding by 16,000 BTC. While some entities were scrambling for the exits, others saw this as an opportunity to double down, loading on every retracement. Their involvement has helped stabilize prices, improving sentiment shredded after last week’s dump to as low as $53,500. German Government Offloading More BTC Even as the “diamond hands” buy the dip, the German government is not stopping; looking at Arkham Intelligence data. Today, on July 11, they moved another 3,250 BTC, on top of the 5,627 sent earlier, to multiple market makers and exchanges, including Bitstamp. Their decision to sell is heaping more pressure on the coin, slowing down the uptrend. Even amid sustained outflows from the German government, a Coingecko survey shows that most respondents, especially investors, are upbeat. Related Reading: Filecoin Boom Incoming? Market Optimism Fuels Crypto’s Next Breakout Star Meanwhile, traders and speculators have mixed sentiments. While 39% of traders are upbeat, expecting prices to recover, another 33.5% of those surveyed are bearish. Most speculators, or 42.4% of those surveyed, are bearish, expecting prices to continue tanking. Feature image from DALLE, chart from TradingView
Bitcoin whales have become accumulators again, but analysts say BTC is still at risk of another sharp correction.
Investors have piled into Bitcoin ETFs over the last three trading days, but it wasn’t enough to offset Germany’s BTC selling spree.
Based on the formation in the daily chart, Bitcoin is at a critical point, price-wise. As the battle between bulls and bears progresses, it is clear that sellers have the upper hand for now despite the recent price stability. BTC Prices At A Crucial Price Level: Will Bulls Take Over? As BTC bulls attempt to reverse losses posted last week, one analyst, citing technical candlestick formation and the reaction at the 200-day moving average, thinks how prices react for now will be consequential in the coming days. In a post on X, the analyst noted that the coin dipped and closed below the 200-day moving average following last week’s losses. This formation was crucial. Over the months, this dynamic line had acted as critical support, anchoring buyers throughout the last bull cycle from October through mid-March. The rally was sustained, and though the level was not retested until late June, when prices were weak across the board, the break last week was decisive. Related Reading: If History Repeats, Bitcoin Price Could Crash 33% Again: Here’s Why While bearish, the analyst acknowledged that last week’s break was clear. However, as it is, there is hope for bears because there has been no confirming bear bar. For this to happen, prices must break below $56,500 and sink below $53,500, marking last week’s low. When this happens, it will be official that bears are back, and sellers will likely continue pushing lower in a bear trend continuation formation. If Bitcoin is to turn around, it is imperative that prices reject last week’s losses and break higher, closing above the 200-day moving average. This recovery will be the bullish signal that may mark the start of a leg up, resuming the uptrend of Q1 2024. For now, traders are watching the psychological line at $60,000 and, ideally, the close above $66,000. In that event, Bitcoin might find the momentum to retest $72,000–an important liquidation level. Eyes On Spot Bitcoin ETF Inflows Even amid the optimism, traders are closely watching inflows to spot Bitcoin exchange-traded funds (ETFs), especially in light of the sustained dump by the German government. The sell-off has been heaping more pressure on BTC, capping gains, and deflating the upside momentum. If sellers are persistent and mirror recent trends, there could be more blood, and spot Bitcoin ETF issuers might register outflows. Related Reading: Can Solana Hit $160? SOL’s Resilience Sparks Rally Optimism In the past few weeks, especially in June, when prices fell, BlackRock, Fidelity, Grayscale, and other top issuers posted outflows, accelerating the downtrend. Feature image from DALLE, chart from TradingView
Bitcoin is struggling to shake off weakness, judging by its performance in the last few trading days. After the dump on June 24, the overall sentiment has been bearish, and sellers will likely double down, wiping gains posted in the last two days. As things stand, the sale of 4,000 BTC by the United States government is a dent for buyers. It comes hours after the German government dumped thousands of BTC early this week, forcing prices to lower. Bitcoin Trending At Oversold Territory One analyst is upbeat even amid this sense of unease across the crypto and Bitcoin markets. Citing formation in the RSI indicator, a tool for gauging momentum, the analyst is convinced prices could recover strongly going forward. Bitcoin is at its lowest overbought level in over 300 days at spot rates. This formation echoes a similar situation in 2023 when prices were stuck below $30,000. Once BTC swung to the oversold territory, prices rebounded strongly, breaking above $50,000 and reaching an all-time high in the coming months through March 2024. Related Reading: Solana Trading Plunges 93% In 24 Hours: Where Did The $100 Billion Go? Thus far, Bitcoin finds itself in the oversold territory after consolidating for roughly three months after peaking in March 2024. Then prices shot to as high as $73,800 before dumping sharply, reaching $56,500 by May 2024. Though prices have recovered, finding another ceiling at $72,000, the path of least resistance in the short term is bearish. Bitcoin is testing its horizontal range’s lower boundary for the fifth time since March. For bulls to take charge, prices must hold above the $56,500 and $60,000 zones for the bullish bias to remain. However, a confirmed breakdown below the range low might see BTC crater dropping to as low as $50,000-$52. Will BTC Bounce Higher? Capital Flow To Spot ETFs Another analyst also expects prices to recover, emphasizing the importance of the bull market support band. Sharing on X, the analyst said this support band has served as a reliable loading zone in the past bull cycle. Related Reading: Cardano (ADA) Faces Further Decline, $0.3389 Support Under Threat Its successful defense in January 2024 offers a positive precedent. With BTC at the same level, the probability of a refreshing bounce is high on the cards, providing a glimmer of hope. Despite the recent price decline and days, if not weeks, of outflows, interest in spot Bitcoin exchange-traded funds (ETFs) is increasing. On June 26, there was $21.5 million into these products. Out of this, Fidelity and Grayscale saw inflows, according to SosoValue data. Feature image from DALLE, chart from TradingView
Bitcoin is under immense selling pressure at spot rates, tracking lower from the all-important resistance level of $66,000. Although BTC may even crash below the psychological line at $60,000 towards $56,500 or May 2024 lows, some analysts are upbeat. Bitcoin Drop Is Normal Post-Halving: Analyst Taking to X, one analyst explained that the current correction […]
The crypto market has seen a marked decline in recent days, prompting both casual observers and seasoned analysts to scrutinize underlying causes. Over the past 24 hours, only XRP (+0.8%) and ENS (+0.2) from the top 100 by market cap are slightly in the green besides stablecoins. A comprehensive analysis by IT Tech, published on […]
Looking at the formation in the daily chart, there is no relief for Bitcoin at spot rates. Following the flash crash on June 6, prices reversed sharply from the $72,000 level, further highlighting the significance of the liquidation level. In the past, Bitcoin prices have recoiled from this level, with analysts expecting a short squeeze to print once this line is breached. Hedge Funds Are Short Selling Bitcoin Futures: Will This Strategy Backfire? Amid this slip, one analyst on X notes that hedge funds and Wall Street firms have increasingly taken short positions on Bitcoin futures contracts, expecting BTC prices to plunge. Though they could be net long on the spot market, taking advantage of the fee differential, the trader notes that this strategy is risky. If anything, massive losses could occur should prices unexpectedly spike. Between the current price point and slightly above all-time highs at $74,000, exchange data and trader notes show $12 billion worth of short positions on BTC futures. This move means that hedge funds are net bearish, and since everyone knows the big boys of Wall Street are shorting, this move could backfire spectacularly. Even so, hedge funds selling BTC futures are nothing new. Often, hedge funds tend to short the futures of a given product and simultaneously buy the spot markets, taking advantage of the carry trade to profit. Related Reading: Shiba Inu Price Could Skyrocket By 1,100%, Predicts Analyst The problem is that this hedging tactic is popular in traditional finance and has been profitable before. On the other hand, Bitcoin is a new asset class that is outside the traditional finance system. Accordingly, the strategy might not pan out exactly as expected, leading to massive losses. BTC Fragile But Spot ETF Issuers On A Buying Spree Whether Bitcoin will recover from spot rates remains to be seen. As it is, BTC is under immense selling pressure, dropping from $72,000. Although the uptrend remains, buyers are yet to reverse the June 6 losses, meaning the path of least resistance in the short term is southwards. A break below $66,000 would completely wipe out gains of May 20, signaling a trend shift. Related Reading: Notcoin (NOT) Develops Falling Wedge Triangle: Rally Looms? Still, buyers are upbeat about what lies ahead. Last week, despite the contraction, all spot Bitcoin exchange-traded fund (ETF) issuers in the United States have been on a buying spree. According to HODL15 Capital, in the first week of June, they added 25,729 Bitcoin. This stash is equivalent to roughly two months’ worth of mined coins and is the highest weekly buying activity since mid-March. Then, BTC rose to all-time highs of around $73,800. Feature image from DALLE, chart from TradingView
Bitcoin is in an uptrend and will likely breach the all-important liquidation line at $72,000. At the spot rate, the coin is up approximately 25% from May lows and may rally, even breaking all-time highs of $73,800. Retail Interest In Bitcoin Falling Even As Prices Approach All-Time Highs Even as Bitcoin prints impressive higher highs, Mike Alfred, a “value investor” and an active crypto commentator, has identified a surprising disconnect: organic search engine traffic on Google is dropping. Apart from the spike in search from Q4 2023 till early January 2024, the trend has been southwards since then. The upswing in organic searches on Google during this period is primarily due to the United States Securities and Exchange Commission (SEC) preparing to approve the launch of spot Bitcoin exchange-traded funds (ETFs). Related Reading: Crypto Analyst Predicts XRP At $0.75 In July Despite Year-Long Slump The excitement ahead of this milestone and the multi-year wait not only saw BTC prices rally but also improved sentiment. Subsequently, more people, mostly new to the industry, were eager to learn more about the digital asset. The rally from Q4 2023 has not fizzled and continues to spot rates. Bitcoin dipped in February before bouncing sharply, breaking $70,000 and printing new all-time highs at $73,800. Even though prices fell weeks later, dipping to as low as $56,500 in May, bulls are preparing to take higher prices. However, unlike the interest seen from Q4 2023 through early January 2024, organic searches, as mentioned, are unusually falling. Alfred argues that this divergence points towards an “institutionally driven bull market” and still “early.” In the past, and before the approval of spot Bitcoin ETFs, retailers played a big role in driving price and sentiment. However, institutions are in play with the products available in the United States. One observer notes that these market participants tend to exhibit “committed ownership,” negating the need for constant online searches. Encouragingly, the absence of retailers in this cycle–extending from the search in organic searches–signifies a drop in speculative buying. Subsequently, in the current state, the Bitcoin market is more liquid and stable than before. Increasing Awareness, Affordability A Reason? There are several explanations behind the drop in organic searches on Google and other search engines. Though institutions might be behind the rally, the decline is because the general awareness of Bitcoin has rapidly grown over the years. Of note, the availability of spot Bitcoin ETFs and widespread media coverage have boosted the coin’s recognition. Related Reading: Beyond BTC: Crypto Miners Get Brainy, Embrace AI After Block Reward Whacking Besides this, there is another aspect of affordability. With the price hovering around $71,200, purchasing a whole Bitcoin is out of reach for many. In return, this dampens retail investor enthusiasm, leading them to consider cheaper altcoins like Dogecoin or Solana. Feature image from Shutterstock, chart from TradingView