The CEO of the cryptocurrency hedge fund Three Arrows Capital says Bitcoin appears to be well-positioned for a significant breakout this month.
Su Zhu says BTC’s recent price action shows clear signs of accumulation.
In addition, Zhu says Bitcoin’s pair with the stablecoin USDT is priced at a premium when compared to BTC’s pair with the US dollar, which he believes is a sign that traders are entering the market.
According to the crypto data firm LongHash, USDT premiums may signal that a rise in the price of BTC is on the horizon.
“…A large positive USDT price premium trends to signal a coming rise in the price of the Bitcoin. Meanwhile, a negative price premium may signal a fall in Bitcoin prices.
Bitcoin prices are difficult to predict, but if you are inclined to try, USDT price premiums are one more factor that you may want to take into account.”
Analyst Willy Woo of Adaptive Capital says he also believes BTC is in an accumulation phase. He’s expecting a long-term rally to begin this month.
But not all analysts are on the same page. Strategist and steadfast Bitcoin bear Tone Vays says he remains convinced that Bitcoin is likely to fall to $5,000 or lower in the first few months of 2020.