Alright, Bitcoin enthusiasts, gather 'round because we've got some juicy tidbits about everyone's favorite cryptocurrency! If Bitcoin's going to soar to those dreamy price targets of $85,000 or even a whopping $100,000, it's going to need a little boost in demand. And by “a little,” we mean a whole lot more enthusiasm from all you crypto fans out there!
Historically, Bitcoin has loved to show off during the fourth quarter of bull cycle years, especially after those magical halving events. Remember the good ol' days of 2012, 2016, and 2020? Bitcoin was on fire with price jumps of 9%, 59%, and 171%, respectively. It seems 2024 is trying to follow in those illustrious footsteps. But here's the kicker—while 2020 saw Bitcoin confidently strutting into Q4 in full bull mode, this time around, it's kind of doing a little dance between bull and bear phases.
Analysts have their eyes peeled, watching for any signs that demand will pick up. In the past, when Bitcoin's demand surged, it often led to an increase in short-term supply. Now, with the introduction of spot Bitcoin ETFs earlier this year, we saw a bit of a supply spike as long-term holders cashed in. But since July, things have been a bit quiet on the demand front, with Bitcoin's apparent demand growth playing it cool, fluctuating between -23,000 and +69,000 BTC monthly.
But fear not! There's a glimmer of hope. Those spot Bitcoin ETFs in the U.S. are starting to show some action. From unloading 5,000 BTC in September, they've now flipped the script, snapping up around 7,000 BTC by month's end. It's the most significant daily purchase since July 21, folks!
And the cherry on top? On-chain data suggests that if prices start to rally in Q4, Bitcoin could very well be on the fast track to that $85,000 or even $100,000 mark. Analysts are calling these figures the upper and maximum levels of traders’ on-chain realized bands. So, buckle up and keep your eyes peeled, because Bitcoin's next adventure could be one for the books!
