What Does This Mean for BTC?
Retail investors are back in full force with Bitcoin (BTC), and this time, their demand exceeds May 2020 levels. The surge comes as Bitcoin is targeting the elusive $100,000 mark, a price level it has struggled to reach.
But will the return of retail demand be enough to propel Bitcoin to new heights? this On-chain analysis Assess potential impacts.
Bitcoin now carries everyone
Historically, the price of Bitcoin has surged as retail demand increased, despite whales and institutional investors often drives the current cycle.
However, according to CryptoQuant, this trend may be turning. Data from the 30-day Retail Investor Demand Indicator, which tracks Bitcoin trading volume below $10,000, shows a significant change, indicating the growing influence of retail investors
At press time, the indicator reached $27.15, its highest level in more than four years. The last time a reading came close to this level, Bitcoin’s price climbed from $9,500 to $37,000 in less than six months.
So if history rhymes, then BTC could rebound and surpassMade $100,000 in a few months. However, Darkfost, an anonymous analyst at CryptoQuant, believes that the move above $100,000 may not happen anytime soon.
The analyst said that increased demand from retail investors for Bitcoin could be a sign that Bitcoin has peaked. Darkfost mentioned in his post that the cryptocurrency may consolidate for a while before the uptrend returns.
“Bitcoin is likely to continue to fluctuate for a while, with minor corrections, before moving above the psychological 100,000 mark. Such a break could reignite retail demand, which could push the market into a euphoric phase.” explained.
Additionally, Glassnode data shows Bitcoin’s short-term realized pricethe average on-chain acquisition value, is $77,675.
Typically, when the realized price is Higher than Bitcoin’s market valuethe trend is bearish. However, with BTC trading above $96,000, which indicates a bullish trend for the coin, the price may rise.
BTC Price Prediction: It May Reach $110,000 in the Short Term
On the weekly chart, Bitcoin has formed a bull flag pattern. A bull flag is a bullish chart pattern characterized by two strong rallies with a brief consolidation phase in between.
The pattern begins with a sharp, almost vertical price surge that forms a “flagpole.” What follows is a pullback, forming parallel upper and lower trend lines, forming the “flag” itself, as shown below.
Since Bitcoin has broken out of this pattern, the price of Bitcoin is likely to reach higher values in the short term. If the verification passes, Bitcoin price may rise That will soon reach $100,274. In a highly bullish scenario, it could rise above $110,000.
On the other hand, if retail investor demand for Bitcoin declines, this prophecy Probably won’t happen. In this case, the price may drop to $90,275.
Disclaimer
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