A trader who continues to build a following with his timely Bitcoin (BTC) calls believes that the crypto king is gearing up for an encore of its parabolic rally witnessed in late 2020 to early 2021.
Pseudonymous analyst Credible Crypto tells his 353,900 followers on the social media platform X that Bitcoin might be on the cusp of a big burst to the upside.
The analyst shares a chart showing that BTC appears to be mimicking a pattern last seen a few years ago when Bitcoin surged from around $13,000 to $60,000 in just a few months. The pattern was also witnessed in 2019 when Bitcoin rallied from $4,000 to $14,000.
“About to make it 3/3.”
Looking at the analyst’s chart, he seems to predict that Bitcoin will rally above $42,500 by December 11th.
In addition to market structure, Credible Crypto is also looking at other data sources, which he says supports his 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 leveraged traders have already been flushed out.
He also says that spot Bitcoin traders appear to be accumulating the dip.
“First, aggregate OI continues to fall within this tight range, indicating we are getting some de-leveraging here which means liq cascades in either direction may not be as significant. This is healthy.
Second, Coinbase has not begun selling off its spot and rather has been consistently buying since my last post. This is healthy.
Third, we can see that despite takers net selling within this tight range (thanks to Binance spot sellers who have market sold $50 million vs Coinbase’s $20 million in buys) price has remained flat, indicating we likely have limit buyers absorbing a significant portion of these market sells. This is also healthy.
Finally, funding and perpetual premiums have been relatively flat since my last post as well, also healthy.
Overall, I think that dips here may be even more shallow than originally anticipated due to the lack of OI to induce liquidation flushes and the clear spot demand we are seeing at these levels.”
At time of writing, BTC is trading at $37,239.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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Source: https://dailyhodl.com/2023/11/27/bitcoin-btc-about-to-repeat-2020-2021-rally-to-60000-according-to-crypto-strategist/