Bitcoin has once again gained attention as retail demand rises to levels not seen since 2020. CryptoQuant analyst Darkfost recently analyzed this development in a report titled “Bitcoin Retail Investor Demand Is Rising”
According to the analyst, the 30-day change in demand from retail investors has reached its highest point in years, indicating renewed interest in Bitcoin among smaller investors. This resurgence comes at a time when long-term holders are gradually taking profits, suggesting a change in market position.
Is $100K now more possible than ever?
The growing participation of retail investors is usually a double-edged sword for the market. On the one hand, it reflects greater commitment and optimism, which can drive greater demand. On the other hand, historical trends suggest that more retail activity It frequently coincides with the highs of the local market.
Darkfost highlighted that Bitcoin appears to be entering a period of sideways trading, with prices oscillating between key resistance and support levels. This consolidation phase could lead to a temporary decline in retail demand as momentum slows.
However, the analyst also suggested that a break above the psychological barrier of $100,000 could reignite retail interest, which could trigger a euphoric phase in the market. Historically, these phases of euphoria have been characterized by sharp price increases, driven by an influx of both retail and institutional capital.
Darfost wrote:
It will be crucial to monitor the interplay between retail and institutional activity during this phase, as strong retail participation often indicates increased market optimism, while institutional interest provides the basis for sustained momentum.
Bitcoin Market Performance
Bitcoin now appears to be seeing a gradual resumption in its price recovery after the past few days of little to no movement. At the time of writing, Bitcoin is up 1.4% in the last day with a current trading price of $95,713, at the time of writing.
This leads BTC to a decline of approximately 3.9% from its all-time high of $99,645 seen in November. Furthermore, this price has raised BTC’s market capitalization to $1.89 trillion as of today, with a 24-hour trading volume of $83.5 billion.
Regardless of this slow price movement in BTC, analysts are still quite bullish in Bitcoin. Renowned crypto analyst known as Captain Faibik, for example, recently revealed in a post on X that Bitcoin is still primed for a rally.
Marking a symmetrical triangle pattern formation On the daily BTC chart, the analyst placed the target for BTC above $105,000.
$BTC The next bullish rally could be just around the corner.
Next stop: $106,000
#Crypto #Bitcoin #BTC pic.twitter.com/KSIdwxI2uN
– Captain Faibik
(@CryptoFaibik) December 3, 2024
Featured image created with DALL-E, TradingView chart
Fountain: NewsBTC.com
