According to the latest on-chain data, demand for Bitcoin, the world’s largest cryptocurrency, has increased in recent days. The question here is: can this growing pressure boost the Bitcoin bull run?
Could the latest demand spike restart the bull run?
CryptoQuant’s head of research Julio Moreno moved to the X platform part an interesting on-chain observation about Bitcoin and investor appetite in recent weeks. According to the on-chain expert, apparent demand for BTC 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 the daily total Bitcoin block grant and the daily change in the amount of Bitcoin held for a year or more. This metric reflects how much BTC is actively in circulation and demanded by the market.
As previously reported, apparent demand for Bitcoin has been steadily declining since April, when the price of Bitcoin hovered around $70,000. Demand for Bitcoin has turned negative at times over the past six months, leading to a relatively calm market environment.
In an October 2 report, CryptoQuant revealed that the flagship cryptocurrency could enter a period of positive seasonal performance, especially now that the Q4 of all half-lives is historically bullish. However, the on-chain analytics company emphasized that increasing demand is one of the critical factors that must adjust before BTC price can resume its bull run.
Now that the pace of demand growth has returned to April levels, it appears that the Bitcoin price is gearing up for a surge to the upside. Therefore, the leading cryptocurrency is more likely to return to its all-time and possible highest price a new printing in the fourth quarter of 2024.
A chart showing BTC's apparent demand and price in 2024 | Source: jjcmoreno/X
However, Moreno noted in his note that demand momentum currently remains negative. The head of research at CryptoQuant said that while “there is still more selling than buying, the magnitude of this imbalance has decreased.”
Bitcoin price at a glance
At the time of writing, BTC’s price is just above the $63,000 mark, reflecting an increase of just 1.1% in the past 24 hours. According to data from CoinGecko, the major cryptocurrency is up 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