Dramatic Rise In The Price Of Bitcoin: How Far Will It Go?

The price of Bitcoin (BTC) soars by 5% this Monday, nearing $66,000. This rise revives investors’ hopes of seeing the flagship cryptocurrency reach new records in the coming weeks.

A strong increase in demand for Bitcoin

The recent surge in Bitcoin’s price is largely explained by a significant increase in demand. According to CryptoQuant data, the demand for BTC is currently growing at its fastest monthly rate since April 2024.

This trend is notably reflected in the massive inflows recorded by spot Bitcoin ETFs. Just for the day of October 14, these financial products attracted 257 million dollars of new capital. A strong signal of the growing interest of institutional investors in Bitcoin.

Moreover, on-chain data reveals a constant accumulation by small holders holding between 10 and 1000 BTC since the beginning of the month. This dynamic could exert additional upward pressure on the prices in the coming days.

Technical analysis, an imminent breakout?

From a technical charting perspective, FXStreet reports that Bitcoin is currently in a descending channel on the weekly chart. A close above the key level of $66,849 would confirm a bullish breakout of this technical pattern.

In the short term, the MACD indicator shows encouraging signs with increasingly smaller red histogram bars. A bullish crossover of the MACD line above its signal line could validate a trend reversal.

The relative strength index (RSI) is at 56, well above the neutral level but still far from the overbought zone. This leaves significant room for growth before the market becomes overheated.

With a current price only 12% below its all-time high of $73,777, Bitcoin seems well-positioned to attempt a return to its peaks. Nevertheless, the inherent volatility of cryptos advises caution. A break of the support at $62,457 would invalidate this bullish scenario in the short term.