Analysts predict BTC could break out and rise to the USD 75K-80K mark.
Recovering investor demand supports this prediction, but increasing leverage could be risky.
The #bitcoin [BTC] price chart shows a potential change in market structure, suggesting a possible breakout from the $50K-72K price range that began in March.
If this high-low is confirmed, we should see a breakout of this upward resistance within two weeks.
The next target is $BTC #BTC has been trading lower since August, suggesting a possible change in market structure.
investor appetite for the world's largest digital asset has also improved, indicating a slow but steady recovery in demand in Q4 compared to Q2 and Q3.
In contrast, demand for BTC has been negative since May, with sales exceeding purchases. However, CryptoQuant notes that the pace of the imbalance is easing.
Indeed, visible demand for BTC, as measured by trading over the past 30 days, indicates that investor demand has reached levels last seen in May. Between late September and mid-October, investors purchased about 150,000 BTC (worth about $9.4 billion).
So, if this trend continues over the next two weeks, the growing demand could support the Stock Money Lizard breakout forecast.
However, increased leverage, as seen in the increase in Open Interest (OI), also poses an immediate risk to the breakout forecast. For those not in the know, increased leverage means that speculators are taking on more risk by borrowing money to open BTC positions in the futures market.
According to Glassnode, some short sellers ($2.5 billion in OI) pulled out after the price #rose from $58.9K to $63.4K over the past weekend. However, the analyst firm also noted that the drop in OI did not exceed 5%, the level at which BTC has historically always enjoyed a long rally.
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