An analyst who has been making regular Bitcoin (BTC) calls recently believes that despite yesterday’s decline, the crypto king is still poised for a big rise.
In a new video update, Credible Crypto tells According to its 351,400 followers on social media platform
According to the trader, Bitcoin is gearing up to end its major wave-four structure by forming an ascending triangle pattern on the lower time frame.
“More likely, I think it’s probably going to end like this [an ascending triangle]. That seems very logical to me. Because again, triangles are often found in wave fours… That would look something like this [a consolidation] here as an ascending triangle and then tear upwards. That might be what we’re getting here right now…
It can take different forms, but that makes a lot of sense here and then just keep going.”
Credible Crypto uses the Elliott Wave Theory in its technical analysis, a method that attempts to predict future price action by following the psychology of the crowd that often manifests itself in waves. According to the theory, a bullish asset experiences a five-wave rally, with waves one, three and five moving upward, while waves two and four are periods of consolidation.
Looking at the trader’s chart, a break of the $38,000 level would mark the end of wave four and push BTC towards its target of around $44,000.
The trader also notes that yesterday’s pullback decimated the amount of open interest in Bitcoin, which tracks the total number of outstanding BTC futures contracts. Credible Crypto says that with excessive leverage out of the picture, BTC is now in a position to move higher.
“We have seen a tremendous amount of liquidations – the largest amount of liquidations since the start of this rally. The largest liquidation amount since $25,000. Open interest has been completely wiped out [out]. I don’t really see much we can achieve by lowering the price here, and we are in a huge uptrend, so expect the dips to be bought aggressively.”
At the time of writing, BTC is worth $35,480.
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