A widely used trading metric that tracks buyer demand on crypto exchange Binance is signalling that Bitcoin may have potential to retest the psychological $100,000 price level before the year’s end, according to an analyst.
Since Oct. 28, Binance Bitcoin (BTC) Taker Buy Volume — which refers to the total volume of buy transactions executed by “takers” on an exchange — has formed higher lows, according to CryptoQuant contributor Burrakesmeci in a Dec. 27 analyst note.
Bitcoin has been lagging as it approaches the final days of 2024. At the time of publication, Bitcoin is trading at $96,222, according to CoinMarketCap data.
Signals increasing Bitcoin investor interest
Takers are essentially buyers who accept the best immediate price the market offers. An increase in this metric signals increasing investor interest and mounting buying pressure.
Bitcoin: Taker Buy Volume - Binance chart. Source: CryptoQuant
Higher lows indicate an upward trend on a chart, where each low is higher than the last. Looking at the CryptoQuant chart, Bitcoin taker buy volume hit a low below $5 billion on Dec. 1. By Dec. 15, it was just under $6 billion, and around Dec. 25, it reached around $6 billion.
Three “higher lows” are typically a strong indicator to traders that an upward trend may be forming.
“Although the market may be overheated and experiencing corrections, the continued rise in taker buy volume suggests that we may see a price increase in Bitcoin in the coming days,” Burrakesmeci said.
Traders see familiar patterns hinting at Bitcoin history repeating
Bitcoin has been trading below the $100,000 level since Dec. 19, after breaking it for the first time on Dec. 5. It’s now down 11.15% from its all-time high of over $108,300 recorded on Dec. 17.
Several crypto traders predict that Bitcoin’s current chart is forming a similar pattern to December 2023.
During the three months starting from December 2023, following the January approval of the spot Bitcoin exchange-traded funds (ETF), Bitcoin rallied by nearly 90%.
“Just noticed Bitcoin’s price action looks extraordinarily similar to the price action almost a year ago,” pseudonymous crypto trader Jack said in a Dec. 26 X post.
Pseudonymous crypto trader Titan of Crypto echoed a similar sentiment to their 110,100 X followers, “Not claiming this scenario will play out, but BTC price action closely resembles late 2023 — with 2024’s pattern seemingly running about 3 weeks ahead of schedule.”
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This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
