The price of Bitcoin (BTC) soared by 5% this Monday, nearing $66,000. This rise revives investors’ hopes of the flagship cryptocurrency reaching new records in the coming weeks.

Increase in Bitcoin Demand

The recent rise in Bitcoin's price is largely explained by a significant increase in demand. According to CryptoQuant, the demand for BTC is currently growing at its fastest rate since April 2024. This trend is notable in the significant inflows recorded by spot Bitcoin ETFs, which attracted $257 million of new capital in October. On-chain data also reveals constant accumulation by small holders, potentially exerting upward pressure on prices in the coming days.

Technical Analysis: An Imminent Breakout?

From a technical standpoint, FXStreet reports that Bitcoin is currently in a descending channel on the weekly chart. A close above the key level of $66,849 would confirm a bullish breakout. The MACD indicator shows encouraging signs with shrinking red histograms, suggesting a potential trend reversal. The Relative Strength Index (RSI) is at 56, allowing significant room for growth before the market becomes overheated.

Outlook and Risks

With the current price only 12% below its all-time high of $73,777, Bitcoin seems well-positioned to attempt a return to its peaks. However, given the inherent volatility of cryptos, caution is advised. A break of support at $62,457 could invalidate this bullish scenario.

Bitcoin's prices continue to show growth, supported by significant demand and positive technical indicators. Despite optimistic forecasts, investors should remain cautious of potential market volatility.