Technical indicators suggest a price increase for Bitcoin (BTC), with Polymarket bettors confident in its potential to surpass $70,000 this month.
Signs point to BTC reaching $70K soon, supported by both technical market data and prediction market bets. Inflows into U.S. Bitcoin ETFs have been robust, with a notable $458.5 million entering on Wednesday.
Demand for Bitcoin is rebounding after a period of stagnation since May, with a monthly increase of 177,000 BTC last week that coincided with a 5% price rally. Over the past week, Bitcoin has risen by 11%, outperforming the CoinDesk 20 (CD20) index, which increased by 9.6%. This uptick marks the largest growth since late April, pushing BTC to a ten-week high of over $67,800, according to analysts at CryptoQuant.
All-Time High Incoming?
“An expansion of apparent demand is crucial for Bitcoin prices to sustainably reach new all-time highs. Historical data shows that apparent demand typically peaks at around 490,000-550,000 BTC,” said Julio Moreno of CryptoQuant, suggesting there is still room for price increases.
U.S. spot exchange-traded funds (ETFs) have been net buyers, averaging nearly 9,000 BTC in daily inflows during Q1 2024. Recent data indicates that Wednesday alone saw $458.5 million flow into U.S. BTC ETFs, with BlackRock’s IBIT leading the pack at $393.4 million.
Moreover, the total balance held by Bitcoin whales, or large influential holders, has increased to 670,000 BTC, with holdings surpassing the 365-day moving average—a positive indicator for future prices.
The BTC open interest (OI) for perpetual futures funding rates spiked to a multi-month high of over 0.0136%, signaling increased volatility as new capital enters the market.
Looking Ahead: Polymarket bettors now see a 64% chance of BTC hitting $70,000 in October, a jump of 45 percentage points in just one week. They also give a 75% chance that Bitcoin will achieve a new all-time high in 2024, reflecting a 23 percentage point increase during the same timeframe.
