Technical signals and investor activity suggest that Bitcoin (BTC) is on track for a significant rally, with some analysts predicting it will hit $70,000 this month.
Bitcoin Demand Increases Amid Bullish Momentum
A combination of rising demand, ETF inflows and positive market sentiment is fueling the bullish outlook.
Bitcoin demand has increased sharply over the past week, with apparent demand increasing by 177,000 BTC, reaching the highest level since late April.
This surge was preceded by a 5% rally that took BTC to a ten-week high above $67,800, according to CryptoQuant analysts led by Julio Moreno.
“In order for Bitcoin to continue its rally towards all-time highs, demand must increase,” Moreno said, adding that previous demand peaks in the 490,000-550,000 BTC range have historically preceded record-breaking price increases.
The surge in BTC demand is being supported by spot Bitcoin ETFs in the US, which have been recording steady inflows. SoSoValue data shows that US ETFs attracted $458.5 million on Wednesday alone, with BlackRock’s IBIT ETF leading the way with $393.4 million.
Meanwhile, whale investors and large holders excluding exchanges and mining pools continued to accumulate BTC, increasing their total balance to 670,000 BTC.
This year-on-year growth exceeded the 365-day moving average and reinforced the market's upward trend.
While market volatility is expected to increase with the entry of new investors into the market, the BTC open interest (OI) weighted funding rate in perpetual futures increased to 0.0136%, the highest level in recent months.
Polymarket bettors are becoming increasingly optimistic, giving BTC a 64% chance of reaching $70,000 in October, a significant jump from last week’s 19% odds.
They also predict that BTC has a 75% chance of reaching a new all-time high in 2024, reflecting growing enthusiasm in the market.
*This is not investment advice.