Bitcoin "Golden Cross" Resurfaces, Institutional and Retail Demand Rise in Tandem, Market Outlook PositiveBitcoin (BTC) has recently exhibited robust performance, forming a crucial technical pattern known as the "Golden Cross." This signal, which occurs when the 30-day moving average (30-DMA) crosses above the 365-day moving average (365-DMA), is generally perceived as a strong bullish indication for the market
Bitcoin "Golden Cross" Resurfaces, Institutional and Retail Demand Rise in Tandem, Market Outlook Positive
Bitcoin (BTC) has recently exhibited robust performance, forming a crucial technical pattern known as the "Golden Cross." This signal, which occurs when the 30-day moving average (30-DMA) crosses above the 365-day moving average (365-DMA), is generally perceived as a strong bullish indication for the market. Bitcoin's price has surged by 8-9% over the past week, currently hovering around $72,200. Market analysts believe that this technical formation could propel Bitcoin to new all-time highs.
According to the latest data from CryptoQuant, Bitcoin's active addresses have witnessed significant growth, further corroborating the strength of the "Golden Cross" signal. Historical data reveals that the "Golden Cross" often coincides with upward price momentum, and its emergence tends to inspire bullish sentiment among consumers. In March of this year, after Bitcoin reached its previous all-time high, a "Death Cross" pattern emerged, pushing prices into a downtrend. Since then, BTC prices have failed to regain their early-year highs. However, the reappearance of the "Golden Cross," coupled with the current bullish positioning and growing market demand, leads analysts to believe that Bitcoin is poised to resume its upward trajectory.
Nonetheless, CryptoQuant analysts caution that if the 30-DMA fails to decisively surpass the 365-DMA, Bitcoin prices could potentially enter a consolidation phase similar to that observed in mid-2021. The market performance within this current technical formation is crucial for long-term investors, and close monitoring of its trajectory is advised.
During the price surge over the past few weeks, retail investor participation has remained relatively subdued, with the price rise primarily driven by institutional investors and large-scale holders ("whales"). However, recent data indicate that retail investor interest in Bitcoin is gradually rekindling. On-chain data reveals that retail demand has reached its highest point since July, signifying a renewed influx of retail investors into the market. Concurrently, Bitcoin prices have been hitting new highs in regions like Europe and Canada, where market demand and liquidity have notably improved.
Against this backdrop, institutional investor demand has remained steadfast, providing a solid foundation of support for the market. Since the launch of Bitcoin spot ETFs, market demand for Bitcoin has experienced a significant uptick. On Wednesday, October 30, Bitcoin ETFs witnessed their second-highest inflow ever, with BlackRock's IBIT fund particularly prominent. Since its inception, IBIT has garnered over $25 billion in total inflows in just 10 months, highlighting the strong appeal of Bitcoin ETFs among investors.
Bitcoin ETFs have not only attracted substantial capital inflows but have also enhanced Bitcoin's market liquidity and awareness. For most traditional investors, spot ETFs offer a legitimate and regulated avenue for investing in Bitcoin, lowering the barrier to entry into the cryptocurrency market. Simultaneously, MicroStrategy, the largest corporate Bitcoin holder, has recently announced plans to raise $42 billion to purchase more Bitcoin. Michael Saylor, MicroStrategy's CEO, has been a steadfast advocate for Bitcoin, and numerous companies and investors globally have adopted Saylor's Bitcoin investment blueprint. Another global tech company has disclosed its intention to incorporate Bitcoin into its balance sheet through a shareholder vote, further demonstrating its interest in Bitcoin. Moreover, the continuous approval of Bitcoin ETFs in Canada, Europe, and the potential for Bitcoin ETFs in the United States are further fueling a global Bitcoin frenzy among investors, bolstering market confidence.
The current performance of the Bitcoin market is exceptionally strong, with the "Golden Cross" technical signal driving a synchronized increase in both institutional and retail demand, leading to a generally optimistic upward outlook for Bitcoin's future. While future price movements may be influenced by macroeconomic data and factors like elections, the resurgence of confidence among both institutional and retail investors suggests a promising long-term outlook for Bitcoin.
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