Originally published on: October 15, 2024
Bitcoin’s price has surged to $67,953, marking a significant milestone as it heads towards its highest daily close since July. The rally has set a new higher high compared to its previous peak of $66,450 on September 27, signaling positive momentum for the leading cryptocurrency.
Despite the impressive price movement, one interesting observation is the lack of retail demand for Bitcoin. While the cryptocurrency is nearing its all-time high, retail interest remains relatively low, according to experts in the industry.
CEO of CryptoQuant, Ki Young Ju, notes that Bitcoin’s apparent demand is starting to pick up, indicating a potential increase in interest from investors. This metric, which compares new supply from mining to changes in long-term holdings, is a crucial indicator of market demand.
Historically, Bitcoin’s apparent demand has risen before significant price surges, similar to the patterns seen in early 2024 before the cryptocurrency hit its all-time high. This trend suggests that Bitcoin may be gearing up for another notable rally in the near future.
Despite the lack of retail interest, indicators like the Coinbase premium and Kimchi premium show positive signs of buying pressure from retail markets in the U.S. and Korea. While overall premiums remain negative, these trends suggest that retail investors may be starting to acquire more Bitcoin.
However, caution is advised as the recent rally has been largely driven by the derivatives market, resulting in increased open interest and potential over-leveraging. Market analysts warn of a possible correction as Bitcoin approaches key resistance levels, such as $68,000.
As Bitcoin aims to break through the $70,000 mark, investors should closely monitor key levels and market indicators for potential opportunities and risks. With the cryptocurrency market showing signs of resilience and growth, the coming days are sure to be filled with excitement and potential for traders and investors alike. Subscribe to our newsletter for more insights and updates on the latest market trends.
