Interest for Bitcoin Returns: Demand Outstrips Supply Again

Various factors show that the interest in Bitcoin (BTC), as well as futures trading, has returned.

According to data from explorer CryptoQuant shared today, Bitcoin’s buying and selling strength has crossed into the green zone in futures contracts. It was last in this area four months ago.

This indicates that again “the buyers are in control,” said market researcher and community manager at CryptoQuant known by his pseudonym “Maartunn.”

This can be seen in the following chart of net taker volume, which measures the difference between the buying and selling volume of Bitcoin futures contracts. When it is positive (green) it means that the strength of demand is greater than the strength of supply, while when it is negative (red) it reflects the opposite.

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The dominance of futures buyers prevailed during early 2023

It should be noted that futures contracts are a popular type of financial derivatives in the Bitcoin market that, as CryptoNews’ Cryptopedia explains, allows one to buy or sell the asset at a given price on an agreed date.

The current dominance of buyers over sellers in Bitcoin futures also coincides with what is seen in the spot market.

Spot trading, also called spot trading, refers to the outright buying or selling of the digital currency. When there is more supply than demand in this market, the price of Bitcoin falls; conversely, when the opposite happens, the price rises.

In the last four days, the price of Bitcoin has remained mostly at $27,000, after a week at $26,000. This rise reflects that buyers have also returned to dominate the spot market.

However, it is worth remembering that during the last month and a half the price has also traded on two other brief occasions above $27,000, as the TradingView chart shows. Therefore, we will have to see if the market manages to sustain this price level this time or if it will fall back to $26,000, the area that prevailed in that period.

The current buying strength experienced by the spot market comes in part from Bitcoin’s most powerful investors. These are the sharks and whales, terms used to denote those holding 10-1,000 BTC and 1,000-10,000 BTC respectively, according to Scout Santiment.

Santiment reported last week that whales and sharks reached their 2023 accumulation high, with a combined amount of 13.03 million Bitcoins. Such a figure is currently equivalent to USD 352.04 billion.

BTC price surpasses key level, analyst says

With demand pushing Bitcoin above $27,000, the price closed September above a bullish metric. This is the 20-period simple moving average (SMA), as highlighted today by the trader and market analyst known as “Moustache.”

“I think this is one of the most bullish macro charts for BTC right now,” the specialist said. He explained that this is because, the last three times the price stayed above this line, it touched a new all-time high (ATH) price.

With the rise that BTC has seen in 2023, its price returned to being mostly above this metric, with the exception of August. Therefore, according to Moustache, such a month can be considered “a fraud” and there are reasons to expect the bull market to continue in the long term.

As reported by CryptoNews, BTC has closed higher six of the first nine of the year, including September, despite the fact that historically this period has been the most negative for the price of the currency.

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(Featured image by geralt via Pixabay)

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