An analyst who’s been making timely Bitcoin (BTC) calls recently believes that the crypto king is still poised for a big surge despite yesterday’s drop.
In a new video update, Credible Crypto tells his 351,400 followers on the social media platform X that Bitcoin may be in the latter stages of a wave four corrective move after dropping to a 24-hour low of about $35,266.
According to the trader, Bitcoin is gearing up to end its major wave four structure by forming an ascending triangle pattern on the lower time frame.
“More likely, I think it’s probably going to end up like [an ascending triangle]. That makes a lot of sense to me. Because again, triangles are often found in wave fours… That would look something like [a consolidation] here like an ascending triangle and then rip to the upside. That may be what we’re getting here at the moment…
It can take different shapes and forms but that makes a lot of sense here and then just continuation.”
Source: Credible Crypto/X
Credible Crypto utilizes the Elliott Wave theory in his technical analysis, a method that attempts to predict future price action by following crowd psychology that tends to manifest in waves. According to the theory, a bullish asset goes through a five-wave rally where waves one, three and five move to the upside while waves two and four are periods of consolidation.
Looking at the trader’s chart, a break of the $38,000 level would mark the end of wave four and push BTC toward his target at around $44,000.
The trader also notes that yesterday’s pullback decimated the amount of Bitcoin open interest, which tracks the total number of outstanding BTC futures contracts. Credible Crypto says that with excessive leverage out of the picture, BTC is now in a position to start moving upward.
“We’ve seen a massive amount of liquidation – the biggest amount of liquidation since this rally started. The biggest amount of liquidation since $25,000. Open interest is completely wiped [out]. I don’t really see much to be achieved by pushing price lower here, and we’re in a massive uptrend, so expect the dips to be bought up aggressively.”
At time of writing, BTC is worth $35,480.
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