Analysis Highlights Surge in Buying Demand

• OnchainTerek highlighted that stablecoin reserves are increasing.
• The analyst also confirmed that Bitcoin reserves are on the decline.
• With the market supply tightening, Bitcoin will skyrocket, the analyst predicted.

Bitcoin (BTC), the world’s largest cryptocurrency, is poised for a bullish turn, according to CryptoQuant analyst OnchainTerek on X (formerly Twitter). OnchainTerek’s analysis highlights declining Bitcoin reserves and increasing stablecoin reserves as signs of an impending Bitcoin price surge. The analyst suggests that as “the market supply tightens and buying power builds, we could be on the verge of a price rally.”

An X user countered this bullish sentiment, pointing to the recently approved spot Bitcoin exchange-traded funds (ETFs) in the United States. These investment products, including BlackRock’s IBIT, have yielded a cumulative -28% return since their launch. In contrast, BTC outside trading hours has a cumulative return of 58.6%.

Read also: Brace for Bitcoin’s Fall: Analyst’ Strategies as $44K Collapse Looms

Data from SoSoValue indicates that spot Bitcoin ETFs have recorded a total cumulative inflow of $17 billion, with BlackRock’s IBIT leading the pack with inflows worth $20.91 billion and a net asset value of $20.56 billion.

It is important to note that terms like “bull market” are gaining traction across social media platforms, even as Bitcoin struggles to reclaim the $60,000 price level after losing it in late September. The leading digital asset is down 21.31% from its all-time high of $73,750 earlier this year.

Bitcoin Price Stalls

The price of Bitcoin has remained between the lower $50,000 and upper $60,000 price levels, unable to hold above the $63,000 region despite several attempts in recent weeks. According to CoinMarketCap data, BTC is down 1.87% in the past month, confirming that demand for the cryptocurrency is not particularly strong.

The chart from TradingView above shows that the Relative Strength Index (RSI) for BTC reads a value of 49.19, suggesting that the bulls may soon take over the BTC price trajectory. The slope of the line suggests higher buying pressure, but for Bitcoin to break above $60,000, trading volumes need to remain high.