According to the latest on-chain data, demand for Bitcoin, the world’s largest cryptocurrency, has accelerated over the past few days. The question here is: Could this increasing pressure spur Bitcoin’s rise?
Could the recent surge in demand restart the upward trajectory?
Julio Moreno, head of research at CryptoQuant, has moved to the X platform to do just that Share An interesting on-chain observation about Bitcoin and investor appetite over the past few weeks. According to the on-chain expert, the apparent demand for Bitcoin is growing at the fastest monthly pace since April 22.
This on-chain disclosure is based on the apparent demand metric, which measures the difference between Bitcoin’s total daily block support and the daily change in the amount of Bitcoin held for one year or more. This metric reflects the amount of active Bitcoin trading and demand for it in the market.
As mentioned earlier, the apparent demand for Bitcoin has been on a steady decline since April when the price of Bitcoin was hovering around the $70,000 mark. Demand for Bitcoin has at times turned to the downside over the past six months, resulting in a relatively calm market climate.
In a report released on October 2, CryptoQuant revealed that the major cryptocurrency may be entering a period of positive seasonal performance, especially since the fourth quarter of all halving years has been historically bullish. However, the on-chain analytics firm highlighted that rising demand is one of the crucial factors that must go along with the BTC price to resume its ascent.
With the pace of demand growth now back to April levels, it appears that the price of Bitcoin may be headed higher. Hence, there is a higher possibility that the leading cryptocurrency will return to its all-time high price and possibly print a new currency in Q4 2024.
A chart showing BTC's apparent demand and price in 2024 | Source: jjcmoreno/X
However, Moreno noted in his post that demand momentum remains negative at the moment. The head of CryptoQuant research said that although “there is still more selling than buying, the extent of this imbalance has eased.”
Bitcoin price at a glance
As of this writing, Bitcoin’s price is just above $63,000, reflecting a rise of just 1.1% over the past 24 hours. According to data from CoinGecko, the leading cryptocurrency rose more than 2% in the past week.
The price of BTC holds above $63,000 on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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