In recent months, Bitcoin (BTC) has primarily traded within a consolidative phase as investors eagerly anticipate a potential breakout. The prevailing consensus within the crypto market suggests that Bitcoin is poised for significant gains in the future. Consequently, there has been a notable surge in global interest in acquiring Bitcoin.
Particularly, data sourced by Finbold on August 26 reveals a substantial uptick in global interest, as indicated by Google Trends data for the search term ‘buy Bitcoin’ over the past year. This surge is reflected in a popularity score of 74, signifying an annual growth rate of 42%. Throughout this period, the search term attained its peak popularity score of 100 during the final week of 2022.
Analyzing regional trends, Nigeria emerges as the leader with a peak popularity score of 100, followed by Cameroon at 33, while St. Helena secures the third position with a score of 23. Ghana ranks fourth with a score of 19, while the United States is fifth place with a score of 7.
Bitcoin’s potential to rally
The interest in Bitcoin has surged following the cryptocurrency’s inability to sustain a rally above the $30,000 mark. The recent drop to around $25,000 has created an enticing buying opportunity.
Noteworthy is the speculation about a potential rally driven by upcoming events in the crypto sphere, with the 2024 Bitcoin halving being seen as a significant catalyst. Additionally, attention has shifted towards the United States Securities and Exchange Commission (SEC) as the approval possibility of the inaugural spot Bitcoin exchange-traded fund (ETF) looms. This approval is expected to draw institutional investors.
The anticipation of a potential rally is also evident in key Bitcoin on-chain metrics. As per a report by Finbold, 5.8% of the total Bitcoin supply is currently held on exchanges, marking an unprecedented low not seen since December 2017.
This metric aligns with Bitcoin’s evolving role as a possible store of value, prompting individuals to transfer their holdings to private wallets. This strategic transition reduces the availability of Bitcoin for exchange-based trading.
At the same time, market observers suggest that both Bitcoin and the broader cryptocurrency market are in a consolidation phase, potentially priming them for a resumption of their upward trajectory in the near future. A sustained breach on either side of this range could determine the market’s direction in the coming months.
It’s worth noting that this increased interest comes on the heels of recent challenges in the crypto sector, including reduced liquidity and thin trading volumes, which have amplified price fluctuations in both positive and negative directions. This trend has been particularly pronounced in August.
Simultaneously, Bitcoin has grappled with regulatory issues that have impacted major players in the space, such as the largest crypto exchange, Binance.
Bitcoin price analysis
As of press time, Bitcoin was trading at $26,006, having undergone a 0.25% correction in the last 24 hours. Over the past week, Bitcoin’s performance has been characterized by consolidation, with a minor decrease of nearly 0.3% evident on the weekly chart.
From a technical analysis standpoint, the primary sentiment surrounding the leading cryptocurrency remains bearish. A concise overview of the one-day indicators suggests a ‘sell’ stance at 15, while the moving averages strongly advocate a ‘strong sell’ position at 14. Meanwhile, the oscillators stand neutral at 9.
Given the current price, Bitcoin appears to be setting its sights on reaching a valuation of $26,500, potentially paving the way towards the $30,000 milestone.
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