Cryptocurrency analyst Credible Crypto suggests that Bitcoin is poised for a parabolic rise in late 2020 and early 2021. The anonymous analyst shared a chart with followers, indicating that Bitcoin could reach $42,500 by December 11.
Credible Crypto also shared other data sources supporting the upward trend, including Open Interest (OI) data, which shows that high leverage traders have already been liquidated. Spot Bitcoin investors, on the other hand, see the dip as a buying opportunity.
According to the analyst, the decrease in open interest within a narrow range indicates a decrease in leverage, suggesting that there may not be significant liquidation steps in either direction. Spot investors on Coinbase, for example, are not selling but continuously buying.
Despite spot sellers on Binance surpassing Coinbase’s $20 million purchases with $50 million in sales, the price stability and the absorption of a significant portion of market sales by buyers indicate a healthy situation.
Lastly, funding and continuous premiums have relatively stabilized since the analyst’s last article, which is considered a positive sign. Taking into account the decrease in open interest and the strong spot demand, it is believed that the dips at these levels may be less severe than expected.
