A well-regarded crypto analyst, Credible Crypto, has identified signals suggesting a potential reversal in Bitcoin’s recent downturn. With 417,400 followers on the social media platform X, the analyst noted that trading activities indicate Bitcoin (BTC) is preparing for a short-term increase.
Is Bitcoin Poised for a Short-Term Rise?
A short-term rise typically happens when traders who initially sell an asset at a high price are compelled to repurchase it as the market turns against them, causing further price increases. Credible Crypto has shown optimism regarding Bitcoin, citing rising spot market demand and steady open interest (OI) in derivative contracts as positive indicators.
What Do the Technical Indicators Show?
The analyst shared a chart revealing that Bitcoin appears ready for an upward movement after briefly dipping below the $54,600 support level. According to the chart, Bitcoin experienced a deviation pattern after a temporary surge beyond its trading range, which usually signals a quick reversal. The trader believes BTC will rise again after its slight fall below the $54,600 level.
Key Insights
- Spot market buyers, particularly on Coinbase, are consistently purchasing Bitcoin.
- Spot sellers on Binance remain inactive, contributing to market stability.
- Perpetual futures CVD (cumulative volume delta) has remained flat.
- Negative funding rates suggest trader confidence in a positive reversal.
- These factors collectively point towards a bullish divergence and a potential price rise.
Currently, Bitcoin is trading at $55,265. Credible Crypto’s analysis suggests that the ongoing buyer demand and stable open interest are signs of a robust upward movement. If these conditions continue, Bitcoin is likely to maintain its upward trajectory.