The price of Bitcoin (BTC) soared 5% this Monday, approaching $66,000. This increase revives investors' hopes of seeing the flagship crypto reach new records in the coming weeks.
Strongly increasing demand for Bitcoin
The recent surge in the price of Bitcoin is largely explained by a significant increase in demand. According to data from CryptoQuant, demand for BTC is currently growing at its fastest monthly pace since April 2024.
This trend is particularly reflected in the massive inflows recorded by spot Bitcoin ETFs. On October 14 alone, these financial products attracted $257 million in new capital. A strong signal of the growing interest of institutional investors in Bitcoin.
Furthermore, the data on-chain reveal a constant accumulation on the part of small holders holding between 10 and 1000 BTC since the start of the month. This dynamic could put additional upward pressure on prices in the days to come.
Technical analysis, an imminent rupture?
From a charting perspective, FXStreet reports that Bitcoin is currently in a descending channel on the weekly chart. A close above the key $66,849 level would confirm a bullish breakout of this technical pattern.
In the short term, the MACD indicator is showing encouraging signs with increasingly smaller red histogram bars. A bullish crossover of the MACD line above its signal line could validate a trend reversal.
The relative strength index (RSI) stands at 56, well above the neutral level but still far from the overbought zone. This leaves significant room for improvement before the market becomes overheated.
With a current price just 12% from its all-time high of $73,777, Bitcoin appears well positioned to attempt a return to its highs. However, the inherent volatility of cryptos calls for caution. A breakdown of the support at $62,457 would invalidate this bullish scenario in the short term.
Maximize your Tremplin.io experience with our 'Read to Earn' program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
