Analyst Bullish on Bitcoin’s Run: More Gains Ahead
A prominent analyst, well-followed in the cryptocurrency space, shared an optimistic perspective on Bitcoin's current momentum.
Despite a notable 17% surge since the beginning of December, the analyst believes there’s further potential for growth.
The analyst suggested that Bitcoin’s recent climb to a 2023 high of around $44,313 doesn’t signal an overheated market.
People keep trying to time the top with shorts and/or profit taking because they believe this rally is "overheated".
Guys, look at the data. There is literally nothing "overheated" about this rally.
— CrediBULL Crypto (@CredibleCrypto) December 5, 2023
Rather than viewing the rally as a peak, they argued that the data indicates a sustained and steady ascent, defying assumptions of excessive heat in the market.
This positive sentiment is bolstered by an analysis of trader behavior across both spot and futures markets.
Observations reveal consistent accumulation during market dips by spot market participants, while Bitcoin’s open interest (OI) declines with each surge—a trend that suggests traders with short positions faced significant losses post the rally above $44,000.
An assessment of this decline in OI indicates a trend of shorts being squeezed out during the recent surge. Alongside this observation, the funding aspect remains robust, indicating that the current upward momentum for Bitcoin isn’t showing signs of tapering off anytime soon.
The analyst firmly asserts that Bitcoin’s potential to surpass resistance levels is substantial, citing the ease with which it surged past the $40,000 mark. They anticipate a swift breach of what are considered ‘major resistance levels.’
As of the latest update, Bitcoin is trading at $43,928, showcasing a more than 4% increase in value within the past 24 hours.