The crypto strategist who nailed the end of the crypto bull market last year says Bitcoin (BTC) could be days away from witnessing extreme volatility.
Pseudonymous analyst Pentoshi tells his 614,600 Twitter followers that he’s keeping a close eye on Bitcoin’s trading volume, which he notes is seeing significant increases across crypto exchanges.
“Big move in next few days after essentially a month of sideways. All same chart, a lot of volume across all exchanges coming in outside of large June sell-off. This is a noticeable uptick.”
According to Pentoshi, the rise in Bitcoin’s trading volume comes as BTC tests its diagonal resistance, which has kept the king crypto in a downtrend since November 2021.
“BTC up against the downtrend line now from the November highs. Quicker taps against the trendline as of late. Let’s see what she got.”
Last week, Pentoshi predicted that Bitcoin could rally to as high as $28,000 as he believes BTC bulls are poised to ignite a relief rally.
The popular analyst is also looking at the Bitcoin dominance chart (BTC.D), which tracks how much of the total crypto market capitalization belongs to Bitcoin. A bullish BTC dominance suggests Bitcoin is rising faster than other crypto assets, or altcoins are losing value while the leading crypto surges.
According to Pentoshi, the BTC.D chart appears to be gearing up a for a big breakout.
“BTC dominance threatening a potential breakout. Keep in mind never once has anything good coming from it touching that bottom line. IF it breaks out here, THEN regardless of a move up or down it will outperform alts.”
At time of writing, Bitcoin is changing hands for $19,211, flat on the day, while the BTC.D chart hovers at 41.28%, very close to Pentoshi’s breakout level.
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