A widely followed analyst and trader is offering his outlook on the two largest crypto assets by market cap.
The analyst pseudonymously known as CredibleCrypto tells his 460,500 followers on the social media platform X that “very healthy signs” have emerged for Bitcoin (BTC) amid the sideways consolidation that the crypto king has experienced over the past one and a half months.
According to the pseudonymous trader, among the positive signs in the market include the open interest declining by 20%, $10 billion of spot market selling getting absorbed, the funding rate flatlining and the spot premium replacing the perpetual contracts premium.
A fall in open interest means there are fewer leveraged positions in the market and thus a reduced risk of cascading liquidations. When the funding rate is flat, it means that the market is balanced and that it’s neither lopsided toward the buyers nor to the sellers.
The spot premium replacing the perpetual contracts premium indicates that the demand for Bitcoin is potentially being driven by long-term holders rather than speculators.
The pseudonymous analyst, however, says that Bitcoin’s “upside is limited” relative to other digital assets such as Ethereum (ETH) with BTC likely to go up by a maximum of between 2x to 2.5x from the current level during the current cycle
CredibleCrypto says,
“Most altcoins that haven’t run yet (and are setting up nicely on high time frames) will outperform against BTC from here on out and Ethereum is like the BTC of altcoins – the “safest” option at the moment among all altcoins and it should STILL yield a higher return on investment than BTC from current levels by cycle end.”
According to the widely followed analyst, Ethereum could go up from the current level by at least 207% to reach a minimum of $10,000 if Bitcoin is headed to a price of above $150,000 this cycle.
Ethereum is trading at $3,253 at time of writing while Bitcoin is trading at $105,188.
Follow us on X, Facebook and TelegramDon't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
