- Historical trends suggest that Bitcoin’s price could rise in the coming months
- Statistics and technical indicators turned red after a major price correction
Saw the last 12 hours Bitcoin [BTC] register important price corrections on the price charts. Still, the price is not far from the recent all-time high. However, BTC’s price wasn’t the only benchmark to hit an ATH recently. In fact, demand also increased sharply.
The renewed interest in Bitcoin among investors could play a crucial role in fueling further growth. Let’s take a closer look at what’s going on.
New Investors Demand Bitcoin
Bitcoin expects its next halving in just a week. In the meantime, however, demand has increased enormously. Elja, a popular crypto investor and influencer, recently shared one tweet highlighting the fact that demand for BTC from accumulation addresses exceeds the supply from miners. This is the first time this has happened in BTC history.
CryptoQuant recently published an analysis detailing how new investors are entering the market. CryptoDan, an analyst and author at CryptoQuant, mentioned in a analysis Bitcoins being held for more than six months means that the number of Bitcoins traded for less than six months has increased, indicating an influx of new investors. Similar incidents have occurred before, and each was followed by bull rallies.
“In 2017, after a large influx of new investors began, Bitcoin peaked nine months later, and in 2021 Bitcoin peaked seven months later.”
Source: CryptoQuant
On this occasion, about three months have passed since new investors poured in. This is a sign that there are still a few months to go before BTC reaches a new peak. Ergo, people who have made price predictions of $100,000 and $150,000 may not be completely wrong.
However, this spike may come a bit late, especially in light of the cryptocurrency’s most recent price correction. According to CoinMarketCapBTC fell more than 5% in 24 hours at the time of writing. Due to the fall of Bitcoin, other cryptos also followed suit.
Is Bitcoin Getting Ready for Another Rally?
Since the chances of new investors fueling a bull rally seemed high, AMBCrypto then checked BTC’s metrics to see if they supported this possibility. We found that not only new investors, but also long-term investors are now in the mood to hold their assets. The same was proven by the green binary CDD.
Source: CryptoQuant
Read Bitcoins [BTC] Price prediction 2024-25
However, on the price charts, BTC’s indicators were in the red at the time of writing. For example, both the CMF and MFI have fallen dramatically, with the former now near 0 on the charts.
