Bitcoin, the pioneering cryptocurrency, maintained a tight trading range as it approached the December 24 weekly close, with its price hovering around $42,765. Amidst this relatively stable phase, traders and analysts are closely watching for signs of a potential breakout.
One such popular trader and analyst, known as Credible Crypto, shared insights on social media platform X (presumably Twitter), suggesting that Bitcoin's current trading pattern indicates a phase of accumulation.
Credible Crypto's analysis points to several factors that could set the stage for Bitcoin's price to surge.The expectation is for a push to over $50,000, driven by what the analyst describes as final accumulation stages.
"It really does not get much better than this,” one of the posts stated, indicating confidence in the imminent rise in Bitcoin's value.
Market Indicators and Order Book DataKey market indicators are resetting, a development Credible Crypto views as essential for fueling an upward trajectory. The accumulation range, combined with new local lows in aggregate open interest (OI), active buying on Coinbase, and nearly fully reset funding rates, all contribute to an environment ripe for a price increase.
The analyst also mentioned a hope for a brief dip into the low $43,000 range to fill more bids before the anticipated rise. Concurrently, order book data for the BTC/USDT pair on Binance, the largest global exchange, highlighted significant resistance levels.
As of the report, resistance was situated at and just below the $45,000 mark, corresponding to approximately $92 million in ask liquidity, according to trading resource Material Indicators.
However, there's a contrasting view from Keith Alan, co-founder of Material Indicators. Alan cautioned that holiday trading activity might not provide enough momentum for bulls to breach these resistance levels.
He suggested that a reallocation of liquidity by owners could thin out resistance, paving the way for upward movement. Alan's commentary indicated that while sudden breakthroughs have occurred since October, continued market consolidation or correction would be healthier in the long term.