Amid the current cryptocurrency price rally, analysts are noting that demand is back.

In traditional markets, “explicit demand” is the difference between the production of goods and the inventory in stock. In the context of Bitcoin, this refers to the mining of new Bitcoins and those coins that have been inactive for more than twelve months.

The metric is relevant because, according to the CEO of CryptoQuant, “if the drawdown of inventory exceeds production, demand increases, and vice versa.”

With demand growing and bullish sentiment intensifying, it looks like this quarter is poised to be a good time to be a crypto hodler. Analyst Michael van de Poppe believes that we will soon see BTC surpass its all-time high (ATH) of $73,750 from March 2024 and reach $90,000.

Some other analysts have suggested, based on technical analysis (TA), that we could even see $250,000 by early 2025. They based this on the Relative Strength Index (RSI), an extremely popular tool among TA traders.

As a momentum oscillator, the RSI helps traders identify signals regarding price momentum and when to enter and exit the market. The RSI works quite well in trading ranges, but traders should be cautious in trending markets.

When the RSI is above 70, traders consider the asset overbought; if the RSI value is below 30, the asset is considered oversold.

Bitcoindata21’s analysis applies a standard deviation to monthly RSI readings, suggesting that the current Bitcoin bull market could peak around $250,000.

This forecast is based on a comparison of historical monthly RSI highs that have previously coincided with significant BTC/USD price moves.

It is important to remember that TA indicators are just one analysis tool. They are best used in conjunction with other TA tools and when considering the broader market context.

For example, the crypto landscape was pretty grim last Thursday, with BTC plummeting to a one-month low below $59,000. However, bulls managed to catch the momentum and helped the asset recover almost all of its losses by the weekend.

So Bitcoin held around $63,000 on Saturday and Sunday, but went on the offensive on Monday and Tuesday. This culminated yesterday with a rally to $68,000, leaving over $250 million in liquidation.

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