Historical data indicates that Bitcoin (BTC) has historically performed well in the fourth quarters of previous bull cycles, particularly in halving years. Current on-chain data suggests the leading cryptocurrency is following previous trends and is poised for another impressive Q4. A report by market analytics platform CryptoQuant suggests that Bitcoin’s price rally over the coming weeks could be sustainable due to recovering demand, which is increasing at its fastest rate since April.

**Bitcoin in Positive Seasonal Performance**

During Bitcoin’s seasonal performance in the halving years of 2012, 2016, and 2020, the cryptocurrency saw increases of 9%, 59%, and 171%, respectively, in their fourth quarters. CryptoQuant analysts noted that BTC is exhibiting patterns similar to those seen in 2016 and 2020. This positive performance is driven by a significant rise in apparent demand for BTC, which recorded a monthly growth of 177,000 BTC last week, the largest increase since April. Apparent demand considers the difference between BTC production (mining issuance) and changes in inventory.

The increase in this metric preceded a rally of over 5% in BTC’s price. The cryptocurrency recently reached a ten-week high of $68,100 and was trading at $67,900 at the time of writing.

**Demand Is Growing**

The increase in BTC demand is evident in the rising purchases of United States spot Bitcoin exchange-traded funds (ETFs), with net buying of approximately 8,000 BTC recently, marking their highest daily purchase since July 21. Large Bitcoin investors, known as whales, are also increasing their holdings, with balances growing by 670,000 BTC annually. The growth in whale holdings surpasses the 365-day moving average, considered a positive indicator for prices.

CryptoQuant emphasizes that the expansion of Bitcoin’s apparent demand is essential for BTC to achieve sustainable surges to new record highs. Historical instances of positive and growing apparent demand have led to BTC price rallies in 2020-2021 and earlier this year. While previous demand peaked at 490,000-550,000 BTC, the current demand is at 177,000 BTC, suggesting more potential for growth.

Twitter text: Bitcoin’s on-chain data hints at a potential Q4 breakout, with demand recovering and major investors increasing their holdings. Are we set for another BTC rally? #Bitcoin #CryptoQuant