A trader who continues to build a following with his timely Bitcoin (BTC) calls believes the crypto king is gearing up for an encore of his parabolic rally that took place in late 2020 to early 2021.
Pseudonymous analyst Credible Crypto tells his 353,900 followers on social media platform
The analyst shares a chart showing that BTC appears to be replicating a pattern last seen a few years ago, when Bitcoin rose from around $13,000 to $60,000 in just a few months. The pattern was also visible in 2019 when Bitcoin rose from $4,000 to $14,000.
“I’m about to make it 3/3.”
Looking at the analyst’s chart, he seems to predict that Bitcoin will rise above $42,500 by December 11.
In addition to market structure, Credible Crypto also looks at other data sources, which it believes supports its bullish bias. According to the analyst, Bitcoin’s open interest (OI), which tracks the total number of outstanding Bitcoin futures and options contracts, indicates that highly indebted traders have already been flushed out.
He also says spot Bitcoin traders appear to be accumulating the dip.
“First, total OI continues to fall within this tight range, indicating we are getting some deleveraging here, meaning fluid cascades in either direction may not be as significant. This is healthy.
Second, Coinbase has not started selling its spot, but has been buying consistently since my last post. This is healthy.
Third, we can see that despite net taker sales within this tight range (thanks to Binance’s spot sellers selling $50 million into the market versus Coinbase’s $20 million in purchases) the price has remained flat, indicating that we likely to have limit buyers absorbing a significant portion of this. market sells. This is also healthy.
Finally, funding and perpetual premiums have also been relatively flat since my last post, also healthy.
Overall, I think the dips here could be even shallower than originally expected, due to the lack of OI to cause liquidation buzz and the clear spot market demand we’re seeing at these levels.
At the time of writing, BTC is trading at $37,239.
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Generated image: Midjourney
