Author: Ciaran Lyons, CoinTelegraph; Translated by: Deng Tong, Golden Finance
A widely used trading indicator that tracks buyer demand on cryptocurrency exchange Binance suggests Bitcoin could have the potential to retest the psychological $100,000 price level before the end of the year, according to one analyst.
As of the time of publishing, Bitcoin is trading at $96,222, according to CoinMarketCap.
Signals of increased interest among Bitcoin investors
Takers are essentially buyers who accept the best immediate price offered by the market. An increase in this indicator indicates increased investor interest and increased buying pressure.
Bitcoin: Recipient buying volume - Binance chart. Source: CryptoQuant
On the chart, higher lows indicate an upward trend, with each low being higher than the previous one. Looking at the CryptoQuant chart, the buying volume of Bitcoin buyers hit a low of just below $5 billion on December 1. By December 15, it was slightly below $6 billion, and around December 25, it reached about $6 billion.
Three 'higher lows' are typically a strong indicator for traders that an upward trend may be forming.
Burrakesmeci stated, “Although the market may be overheated and experiencing a correction, the sustained increase in buying volume from recipients indicates that we may see a rise in Bitcoin's price in the coming days.”
Traders see a familiar pattern suggesting a repetition of Bitcoin's history
Since Bitcoin first broke $100,000 on December 5, it has been below that level since December 19. Currently, Bitcoin is down 11.15% from the all-time high of over $108,300 set on December 17.
Some cryptocurrency traders predict that Bitcoin's current chart is forming a pattern similar to that of December 2023.
In the three months since December 2023, following the approval of the spot Bitcoin exchange-traded fund (ETF) in January, Bitcoin has risen nearly 90%.
“I just noticed that the price trend of Bitcoin is very similar to the price trend from about a year ago,” said anonymous cryptocurrency trader Jack in an article on December 26.
Anonymous cryptocurrency trader Titan of Crypto expressed a similar viewpoint to his 110,100 X fans, saying, “It’s not to say that this will happen, but BTC's price trend is very similar to the end of 2023— the 2024 pattern seems to be ahead of schedule by about 3 weeks.”
