- CrediBULL Crypto predicts short-term bearish trend for Bitcoin.
- OI level is crucial indicator for CrediBULL’s prediction.
- Traders use OI metric to identify local tops and bottoms in trending market.
CrediBULL Crypto, a prominent crypto analyst on Twitter, has recently forecasted a short-term bearish trend for Bitcoin. The analyst pointed out that Bitcoin is currently trading below a crucial resistance zone and an aggregate open interest (OI) level, potentially threatening its market performance. This insightful analysis highlights the importance of monitoring key indicators and market trends to make informed investment decisions in the volatile world of cryptocurrency.
CrediBULL Crypto has recently shared a comprehensive chart analysis, shedding light on the critical areas of the Bitcoin chart that significantly impact his prediction. These areas include a CME gap, a supply region, and a support level. However, the OI level is the most crucial indicator that has influenced CrediBULL’s prediction. According to CrediBULL, the OI level has considerable scope for fulfilling a short-term downward price movement. This analysis showcases CrediBULL’s expertise and professionalism in the field of cryptocurrency.
According to CrediBULL, a convergence of factors points towards a potential Bitcoin price correction that could fill the CME gap below. This analysis also suggests that the price may experience a decline in tandem with the Open Interest until it reaches a bottom. CrediBULL further predicts that the price could drop even further if the support level of approximately $25,000 is breached. These insights provide valuable information for investors seeking to make informed decisions in the volatile cryptocurrency market.
CrediBULL places great importance on the OI metric, recognizing it as a vital indicator for tracking trend development. In a previous post, the analyst highlighted that the aggregate OI fluctuates between 10 and 6 billion thresholds. Traders widely utilize this metric to identify local tops and bottoms in a trending market. As such, traders typically respond when the OI hits the 10 billion mark by liquidating their long positions, resulting in a subsequent price drop.
Contrary to popular belief, CrediBULL has shed light on the fact that a drop in Open Interest (OI) towards the 6 billion mark indicates a depletion in the liquidation of long positions. This, in turn, paves the way for a healthy upward movement in prices. As a result, traders rely on this metric to align prices and make informed decisions.
Furthermore, CrediBULL astutely observed that the Open Interest (OI) currently stood at a staggering 8.6 billion, leaving ample space for further decline. After analyzing various metrics, the analyst concluded that Bitcoin’s value is expected to experience a short-term dip.
