Connect with us


Interest for Bitcoin Returns: Demand Outstrips Supply Again

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.” With the rise that BTC has seen in 2023, its price returned to being mostly above this metric, except for August.




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.

Read more on the subject and find the latest financial news of the day with the Born2Invest mobile app.

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.


(Featured image by geralt via Pixabay)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in  CRYPTONOTICIAS. A third-party contributor translated and adapted the articles from the originals. In case of discrepancy, the originals will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.

Michael Jermaine Cards is a business executive and a financial journalist, with a focus on IT, innovation and transportation, as well as crypto and AI. He writes about robotics, automation, deep learning, multimodal transit, among others. He updates his readers on the latest market developments, tech and CBD stocks, and even the commodities industry. He does management consulting parallel to his writing, and has been based in Singapore for the past 15 years.