Experienced cryptocurrency analyst Credible Crypto, who has recently made notable calls for Bitcoin (BTC) to rise, said that despite yesterday’s drop, the largest cryptocurrency is still moving within an upward trend. According to the analyst, BTC is preparing for a major surge.
Bitcoin is Getting Ready for the Real Big Breakout, According to the Analyst
Cryptocurrency analyst Credible Crypto stated that during the latest market evaluation, looking at Bitcoin, the crypto king may have reached the final stages of the corrective move in the fourth wave after it dropped to $35,266, the lowest level in the past 24 hours. According to the analyst, Bitcoin is preparing to end its fourth wave structure by forming a rising triangle formation in a lower time frame:
Most likely, it will end the fourth wave structure by breaking out of the formation that looks like a rising triangle. This makes a lot of sense to me because triangles are usually found in four waves. Currently, it seems to be consolidating within the rising triangle formation and will probably climb upwards afterwards. What we are experiencing here is definitely something like this. It may take different shapes and forms, but the likelihood of an upward move at the end is quite high.
Credible Crypto uses the Elliott Wave theory, which is a method of predicting future price movements by following the crowd psychology that tends to move in waves. According to this theory, an asset that is on an upward trend moves in an upward direction in the first, third, and fifth waves, while it consolidates as a five-wave rally in the second and fourth waves.
Looking at the price chart shared by the analyst, breaking the $38,000 level will indicate the end of the fourth wave. After this break, the analyst predicts that the rise will begin towards around $44,000.
Emphasizing the Reduction in Open Interest (OI) Amount for the Continuation of the Rise
Credible Crypto also pointed out that yesterday’s drop reduced the total number of outstanding BTC futures contracts. The analyst stated that with excessive leverage being out of the picture, BTC is now in a position to start moving upwards and used the following statements:
With the recent drop, we saw a significant amount of liquidation, and yesterday’s liquidation was the largest since the rally started. The largest liquidation occurred since $25,000. OI has been completely wiped out. I can’t see much reason to pull the price down, and we are in a major upward trend, so I expect every dip to be heavily bought.
