A popular crypto analyst, known as Credible Crypto, is predicting a potential rebound for Bitcoin (BTC). He believes the cryptocurrency is showing signs of a bottom formation, suggesting a reversal from its recent correction.
Signs of a Bullish Trend
Credible Crypto points to several indicators that support his bullish outlook:
- Strong Spot Market Demand: Coinbase, a major cryptocurrency exchange, is seeing consistent buying activity for Bitcoin, while Binance, another major exchange, is showing little selling.
- Stable Open Interest: The total number of outstanding derivatives contracts for Bitcoin remains flat, indicating a lack of significant selling pressure.
- Negative Funding Rates: This suggests that traders are leaning towards a bullish sentiment.
Credible Crypto believes these factors, combined with the recent price action, point to a potential short squeeze. A short squeeze occurs when traders who bet on a price drop are forced to buy back the asset at a higher price, further driving up the price.
Chart Analysis Suggests a Surge
The analyst also shared a chart showing a potential deviation pattern in Bitcoin’s price movement. This pattern, he suggests, indicates a temporary move beyond the asset’s trading range, followed by a reversal.
Based on the chart, Bitcoin briefly broke above its resistance level in late August, leading to a correction. Now, Credible Crypto believes Bitcoin is set to rally after temporarily dipping below its support level.
Disclaimer: This is not financial advice.
Remember, this is just one analyst’s opinion. Always do your own research and consult with a financial advisor before making any investment decisions.
