By Michael Scott
Analysts are bullish for Bitcoin gains in Q4, fueled by institutional demand and innovation following the US Fed’s 50 basis-point rate cut.
The crypto trade has been hovering around month’s highs since mid-last week, with analysts calling for upside momentum in Bitcoin price as the fourth quarter edges closer. The digital assets market is set for a solid rally as analysts anticipate institutional adoption to fuel broader crypto sector growth.
Cryptoquant analysts consider the key indicators signal that Bitcoin could sustain the positive sentiment witnessed when it rallied nearly 8% following the 50 basis-point rate cut to trade above $63,500 per CoinGecko data. The analyst acknowledges that the evolving regulatory landscape coinciding with institutional buying will lift the Bitcoin price to a new $58,000 – $72,000 range in October.
Buying Pressure to Fuel BTC Massive Surge
As more favorable market conditions kick in, the Bitcoin bullish momentum coincides with altcoins registering notable intra-day and seven-day gains. In a recent update by the CryptoQuant analyst, Bitcoin’s (BTC) price is set for a massive surge as buying pressure expands across global markets.
The solid demand for crypto is expanding beyond the US, fueled by FOMO (fear of missing out). The CryptoQuant analyst considers the movement across the global markets to appear positive and capable of sustaining the upward trend, which is ideal for Bitcoin to retest its all-time highs in Q4.
Simultaneously, Bitcoin spot exchange-traded funds (ETFs) have since Sept. 19 realized significant daily net inflows averaging $97.68 million per Sosovalue data. The Bitcoin ETFs are gaining attraction, lifting the cumulative total net inflow to $17.83B, suggesting increased institutional adoption amid macro shifts. The activity adds further fuel to the likely crypto market rally.
In a recent note, CF Benchmarks senior researcher Gabriel Selby revealed that digital assets will sustain current growth in Q4, citing macro shifts and institutional adoption. The research analyst adds that sovereign balance sheets will experience pressure, prompting investors to pursue long-term hedges in Bitcoin.
CF Benchmarks analysts anticipate the macroeconomic shifts alongside technological progress sustaining influence on digital assets. Notably, the growing appetite for Bitcoin ETFs is the tipping point, positioning the funds as integral pieces within the diversified portfolios.
On the macro front, the crypto assets will tap thrust from subsiding inflation and rate cuts as they likely support positive investor sentiment. Bitget Research analyst Ryan Lee echoes this perspective with a bullish Bitcoin trajectory as we head into the final quarter. He predicts Bitcoin’s uptrend in October will surpass the September performance to sustain the target range of $58,000 to $72,000.
Lee spotlights several compelling signs emerging within the derivatives market supporting market rally in Q4. The analyst considers the negative funding rates witnessed month-long in the Bitcoin futures precede a significant rebound.
Historically, the Fear & Greed Index lingers within the “extreme fear” zone preceding accelerated uptrends. Lee adds that institutional players of the looming growth. The analyst observes that MicroStrategy is selling bonds to fund additional Bitcoin purchases.
Lee illustrates that Bitcoin exchange-traded funds (ETFs) have sustained net inflows since the interest rate cuts. Such indicates growing optimism among institutions about the market outlook. The analyst calls for Bitcoin to break previous highs driven by the ongoing institutional buying.
Bitcoin Tests ‘Supply in Profit’ Level Suggests Further Gains
Looking ahead, CF Benchmarks’ Selby holds that several trends point towards accelerating crypto adoption. Primarily, the U.S. regulatory landscape is set to evolve after the November 5 presidential election to foster an environment that will nurture crypto innovation.
Bitcoin’s price rally had the ‘supply in profit’ indicator signaling a potential uptrend in Bitcoin price. The metric tracks the percentage of bitcoin’s circulating supply bought at a lower price relative to the prevailing market value.
The rise in the supply in profit illustrates that a significant portion of BTC holders have realized the profit zone. A higher percentage lowers the selling pressure while simultaneously increasing the market confidence.
CryptoQuant lead researcher Julio Moreno shows the recent Bitcoin uptick lifted the supply-in-profit metric above the 365-day moving average. The latter constitutes an inflection point indicative of additional upward momentum for Bitcoin.
The supply-in-profit level is the emotional benchmark for Bitcoin investors as the essential support and resistance zone. Investors’ confidence tends to rise if the price holds above this level, and selling pressure increases if it slips below.