A widely followed crypto analyst says that Bitcoin (BTC) is gearing up for a historic move to the upside now that a rarely seen indicator has flashed.
The pseudonymous analyst known as Credible Crypto tells his 344,900 X followers that BTC is going through a period of record low volatility or a compression phase, which he says will ultimately lead to historic expansion.
He shares a chart from fellow crypto analyst TechDev who points out that BTC’s three-week chart is approaching compression levels that previously signaled the start of bull markets since 2012.
Says Credible Crypto,
“Historic compression leads to historic expansion… Imagine looking at this chart and thinking ‘Yea, $10,000 incoming.’
A ticking time bomb till bear extinction. BTC.”
While many BTC bulls have lost confidence due to Bitcoin’s uneventful price action, Credible Crypto says Bitcoin is simply consolidating, which should be considered bullish.
“Seeing a lot of ‘If we are so bullish, why aren’t we moving up? Bulls don’t have the strength to push the price higher, this is bearish.’
When the price is moving sideways, it means that neither bears NOR bulls are in the driver’s seat – consolidation is by definition NEUTRAL. Buyers and sellers have reached an equilibrium.
9 out of 10 times, consolidation structures resolve in the direction of the trend that preceded them. We have been in a very clean, obvious uptrend since $15,000. By default then, one should expect this consolidation over the last month to resolve to the upside.
Your default stance on BTC here should be bullish, in my opinion, unless we start breaking bullish market structure (first, lowest timeframe level of bullish market structure that matters is $24,800, marked on the chart.)”
Generated Image: Midjourney