For the past few months, Bitcoin (BTC) has been trading mostly in a consolidation phase as investors eagerly await a possible breakout. The prevailing consensus in the crypto market suggests that Bitcoin is poised for significant gains in the future. As a result, global interest in acquiring Bitcoin has increased significantly.
In particular, data sourced by Finbold on Aug. 26 shows a significant surge in global interest, as evidenced by Google Trends data for the search term “buy bitcoin” over the past year. This increase is reflected in a popularity rating of 74, which represents a 42% annual growth rate. During this period, the search term reached its highest popularity score of 100 in the last week of 2022.
Google Trends global score for the buy bitcoin keyword. Source: Google Trends
Analyzing regional trends, Nigeria tops the list with a popularity score of 100, followed by Cameroon with 33, while Saint Helena comes in third with a score of 23. Ghana is fourth with a score of 19, while the United States is fifth with a score of 7.
Google Trends score for buy bitcoin keyword by country. Source: Google Trends
Bitcoin’s potential to rally
Interest in Bitcoin has surged after the cryptocurrency failed to sustain a surge past $30,000. The recent drop to around $25,000 has created an enticing buying opportunity.
Notable is the speculation of a possible rally fueled by upcoming events in the crypto space, with the Bitcoin halving in 2024 seen as a key catalyst. Additionally, attention has shifted to the US Securities and Exchange Commission (SEC) as the possibility of approval of the first spot bitcoin exchange-traded fund (ETF) looms. This approval is expected to attract institutional investors.
Anticipation of a possible rally is also evident in key bitcoin on-chain metrics. According to a report by Finbold, 5.8% of the total bitcoin supply is currently held on exchanges, which is an unprecedented low since December 2017.
This metric is consistent with Bitcoin’s evolving role as a potential store of value, prompting individuals to transfer their holdings to private wallets. This strategic transition reduces the availability of Bitcoin for exchange trading.
At the same time, market watchers believe that both Bitcoin and the broader cryptocurrency market are in a period of consolidation, potentially setting them up for a resumption of their uptrend in the near future. A sustained break on either side of this range could determine the direction of the market in the coming months.
It is worth noting that this increased interest is due to recent challenges in the crypto sector, including reduced liquidity and low trading volumes, which have caused price swings in both positive and negative directions. This trend was particularly pronounced in August.
At the same time, Bitcoin has grappled with regulatory issues that have impacted major players in the space, such as the largest crypto exchange, Binance.
Bitcoin price analysis
At press time, Bitcoin was trading at $26,006 after undergoing a 0.25% correction over the past 24 hours. Over the past week, Bitcoin’s performance has been one of consolidation, with a minor drop of nearly 0.3% seen on the weekly chart.
Bitcoin seven day price chart. Source: Finbold
From a technical analysis perspective, the main sentiment surrounding the leading cryptocurrency remains bearish. A close look at the one-day indicators points to a ‘sell’ position at 15, while the moving averages strongly suggest a ‘strong sell’ position at 14. Meanwhile, the oscillators remain neutral at 9.
Technical Bitcoin Analysis. Source: TradingView
Given the current price, Bitcoin appears to be aiming for a valuation of $26,500, potentially paving the way to $30,000.
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Source : finbold.com