An analyst noted that a widely used trading indicator can track buyer demand on the cryptocurrency exchange Binance, indicating that Bitcoin may retest the psychological price level of $100,000 before the end of the year.
Since October 28, Binance Bitcoin CryptoQuant contributor Burrakesmeci noted in an analyst report on December 27 that the purchase volume from recipients (the total amount of buy transactions executed by exchange 'recipients') has formed higher lows.
As 2024 draws to a close, Bitcoin has been lagging behind. According to data from CoinMarketCap, at the time of this article's publication, Bitcoin's trading price was $96,222.
This indicates growing interest among Bitcoin investors.
Recipients are buyers that accept the best immediate prices offered by the market. An increase in this indicator suggests heightened investor interest and increased buying pressure.
On the chart, higher lows indicate an upward trend, with each low being higher than the previous one. Looking at the CryptoQuant chart, the purchase volume from Bitcoin recipients fell below $5 billion on December 1. By December 15, this figure was slightly below $6 billion, and around December 25, it reached approximately $6 billion.
Three 'higher lows' typically indicate that traders may be forming an upward trend.
Burrakesmeci stated, 'Although the market may be overheated and undergo adjustments, the continued increase in recipient purchase volume suggests that we may see a rise in Bitcoin prices in the coming days.'
Traders have seen familiar patterns suggesting a historical repetition for Bitcoin.
Bitcoin first broke through the $100,000 mark on December 5 and has remained below that level since December 19. Currently, Bitcoin's price has fallen 11.2% from its historical high of over $108,300 set on December 17.
Several cryptocurrency traders predict that Bitcoin's current chart will form a pattern similar to that of December 2023.
In the three months since the approval of spot Bitcoin exchange-traded funds (ETFs) in January 2023, Bitcoin has risen nearly 90%.
Anonymous cryptocurrency trader Jack stated in an X post on December 26, 'I just noticed that Bitcoin's price movements are strikingly similar to those from nearly a year ago.'
Anonymous cryptocurrency trader Titan of Crypto expressed a similar viewpoint to his 110,100 followers, saying, 'It's not to say this will happen, but BTC's price movements are very similar to the end of 2023 - and the 2024 pattern seems to be about three weeks ahead of schedule.'
