A widely followed crypto analyst says that market behavior is signaling a breakout to the upside for Bitcoin (BTC).
In a new thread, pseudonymous crypto strategist Credible Crypto tells his 349,500 followers on the social media platform X that the king crypto should surge as long as overeager short sellers unload into BTC’s support level.
“We are about halfway to my ideal downside target. However, we are now seeing some shorts building up into our range highs (a logical support level) and the bid side on Binance perps is stacked heavier than the ask side.
Shorts shorting into support with bids stacked waiting is usually a recipe for the price to squeeze/revert back to the upside. Will overeager shorts cause us to front-run my ideal downside target? Stay tuned to find out.”
According to the crypto trader, the metrics suggest that short sellers will attempt to move the price of Bitcoin down but will ultimately fail. He points out a collapse in cumulative volume delta (CVD), an indicator that aims to spot divergences by comparing buying and selling volume over a given time period. Credible says that price remaining steady in the face of declining CVD suggests that a large entity is absorbing the sell pressure.
“For the last week during this tight consolidation: OI (open interest) is relatively flat – meaning you don’t have a massive build-up of new [leveraged] positions.
Meanwhile, spot CVD has been dumping, implying spot holders have been aggressively market selling.
However, [the] price isn’t moving down. Meaning some entity is absorbing all this spot selling with passive/limit bids.
What does it mean when the aggressors (spot market sellers) exert tons and tons of effort to move price down but get little to nothing to show for it?”
Bitcoin is trading for $34,639 at time of writing, a fractional increase during the last 24 hours.
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