Closely followed crypto strategist, Credible Crypto, indicated signs of reversal in Bitcoin's (BTC) recent correction. The pseudonymous analyst told his 417,400 followers on social media platform X that Bitcoin trader activities suggest BTC is gearing up for a short-term rise.
Short-Term Rise
A short-term rise occurs when traders who borrow an asset at a certain price to sell it at a lower price are forced to buy back the borrowed assets as momentum turns against them, triggering further increases. Credible Crypto expressed optimism about Bitcoin, noting that spot market demand is rising and the number of open interest (OI) or total open derivative contracts for a particular asset remains steady.
"Coinbase spot buyers are consistently buying, Binance spot sellers are inactive, perpetual futures CVD (cumulative volume delta) is flat, funding is negative. This forms the basis for bull divergence and is what you want to see for potential bottom formation. If Coinbase buyers maintain buying pressure and Binance sellers remain inactive, we will ultimately trigger a nice short-term rise upwards. Price rises in spot buying while OI remains flat or does not increase. This is a sign of a healthy rise."
Technical Analysis and Comments
The trader also shared a chart indicating that Bitcoin is ready for a rise after briefly falling below the $54,600 support level.
"My latest artwork."
Looking at Credible Crypto's chart, it is suggested that Bitcoin formed a deviation pattern after experiencing a temporary move beyond its trading range. This structure typically indicates a sudden reversal as the asset loses momentum to sustain this move. According to the trader's chart, BTC deviated from its range after briefly rising above the $62,700 resistance at the end of August and experienced a correction. Now, the trader believes BTC will rise again after temporarily falling below the $54,600 support level.
Current Situation
At the time of writing, Bitcoin is trading at $55,265. The data and analyses shared by the trader indicate that Bitcoin has potential for an upward move in the short term.
In summary, the increase in spot market buyer demand for Bitcoin and the stable open interest in the futures market are considered signs of a healthy rise. Credible Crypto believes that as long as these conditions persist, Bitcoin will continue its upward movement.
