Technical signals and investor activity suggest Bitcoin (BTC) is on track for a significant rally, with some analysts forecasting a move to $70,000 this month. A combination of rising demand, ETF inflows, and positive market sentiment is fueling the bullish outlook.
Demand Rebounds, Pushing BTC Higher
Bitcoin demand surged sharply last week, with apparent demand increasing by 177,000 BTC—the highest level since late April. This surge preceded a 5% rally, driving BTC to a ten-week high of over $67,800, according to CryptoQuant analysts led by Julio Moreno.
“Expanding demand is essential for Bitcoin to sustain a rally toward new all-time highs,” Moreno noted, adding that previous demand peaks in the 490,000-550,000 BTC range have historically preceded record-breaking price runs.
Over the past week, Bitcoin has gained 11%, outperforming the broader CoinDesk 20 (CD20) index of leading digital assets, which rose 9.6% during the same period.
ETF Inflows and Whale Accumulation Boost Market Sentiment
The surge in BTC demand is supported by spot Bitcoin ETFs in the U.S., which have recorded steady inflows. SoSoValue data shows U.S. ETFs attracted $458.5 million on Wednesday alone, with BlackRock’s IBIT ETF leading the way, taking in $393.4 million.
Meanwhile, whale investors—large holders excluding exchanges and mining pools—have continued accumulating BTC, raising their total balance to 670,000 BTC. This year-over-year growth has exceeded its 365-day moving average, reinforcing the market’s bullish sentiment.
Options Market Reflects Strong Bullish Sentiment
Market volatility is expected to rise as new investors enter the market, with the BTC open interest (OI) weighted funding rate in perpetual futures spiking to 0.0136%, a multi-month high.
Polymarket bettors are increasingly optimistic, assigning a 64% chance that BTC will hit $70,000 in October, a significant jump from 19% last week. They also predict a 75% chance of BTC reaching a new all-time high in 2024, reflecting heightened market enthusiasm.
DOGE and Other Meme Coins Stay in the Green
In other crypto news, Dogecoin (DOGE) saw a 5.8% rally on Wednesday, buoyed by reports that Elon Musk had donated $75 million to a Trump-aligned Political Action Committee. Musk’s promotion of the “Department of Government Efficiency (DOGE)” on X further boosted sentiment around the token.
Meme coin BONK, a Solana-themed rival to DOGE, also surged by nearly 9% during Asia’s Wednesday trading session, keeping the meme coin market lively.
Looking Ahead: Bitcoin’s Path to $70K
With demand rebounding and institutional investors ramping up their exposure, Bitcoin appears well-positioned for a continued rally. If the momentum holds, BTC could surpass $70,000 this month, bringing the asset closer to a potential all-time high in 2024.
Traders and investors will be watching the coming weeks closely as the U.S. election approaches, with both market sentiment and regulatory developments likely to shape Bitcoin’s trajectory.
