Bitcoin (BTC) price skyrocketed to another 2023 peak of $39,500 after the Fed teased potential rate cuts in 2024.
On-chain data shows that retail demand for Bitcoin has exceeded active sell orders by a large margin of 10,300 BTC as of Nov 3.
Technical analysis indicators show the key resistance and potential support levels that could impact the ongoing bullish BTC price rally.
Bitcoin’s (BTC) price hit yet another 2023 peak as it crossed the $39,500 level on Sunday, Nov 3, 2023. A vital on-chain trading metric shows that Bitcoin traders continue to pile on more demand for BTC signaling that the rally could further accelerate.
Retail Traders Have Placed Orders for Another 36,400 BTC
Bitcoin price hit $39,500 on Sunday, November 3, 2023, bringing its year-to-date gains to 140%. But despite the triple-digit price gains, on-chain data trends shows that the bulls are still angling for more profits.
IntoTheBlock’s Aggregate Exchange Order Books chart, is a vital on-chain metric that affirms this positive Bitcoin price outlook.
Recent readings from the trading logs of 20 prominent crypto exchanges including Binance and Coinbase shows that the Bitcoin retail traders are pilling on more demand in the spot markets.
As depicted below, bullish BTC traders have placed buy-orders for 36,400 BTC (~$1.4 billion) at an average price of $39,427. Meanwhile, the sellers have only put 25,100 BTC coins up for sale around the current prices.
This implies that there is currently an excess demand for 10,300 BTC across crypto exchanges.
The Exchange Order Books chart depicts the price distribution of the total buy/sell orders for a specific cryptocurrency across various exchanges.
Currently, Bitcoin market demand (buy orders) exceeds supply (sell orders) by nearly 10,300 BTC. This a strong indication that despite price hitting a new yearly peak, Bitcoin is still attracting more demand, and fewer holders are looking sell.
Typically, when the market demand for an asset exceeds supply, the relative scarcity puts upward pressure on the price.
In effect, many sellers may be inclined to raise BTC prices in the days ahead as buyers compete to get their orders filled quicker. If this current market dynamic persists, it could drive Bitcoin price toward $50,000 in December 2023.
BTC Price Prediction: Road to $50,000?
From an on-chain perspective, the mounting buy orders look set to drive Bitcoin price into another leg-up. Having reclaimed the $39,500 territory, the 10,300 BTC excess market demand recorded this week could intensify the bullish momentum.
In the daily time frame, Bollinger Band technical indicator also confirms this bullish prediction. It shows that BTC price has recently broken above the Upper Bollinger Band of $39,477.
If the bull rally accelerated, the bulls next significant resistance lies at the $43,000 area. A decisive breakout above that range could see Bitcoin price claim a new 2023 peak above $50,000 for the first time since 2021.
Ibrahim Ajibade Ademolawa is a seasoned research analyst with a background in Commercial Banking and Web3 startups, specializing in DeFi and TradFi analysis. He holds a B.A. in Economics and is pursuing an MSc in Blockchain.