Bitcoin price could see a strong rebound in the coming days as demand from spot buyers on cryptocurrency exchange Binance continues to rise.
A widely used trading indicator that tracks buyer demand on cryptocurrency exchange Binance suggests Bitcoin could potentially retest the psychological $100,000 price level before the end of the year, according to one analyst.
Since Oct. 28, Binance Bitcoin CryptoQuant contributor Burrakesmeci noted in a Dec. 27 analyst note that taker buy volume, which refers to the total amount of buy trades executed by “takers” on an exchange, has been forming higher lows.
As 2024 approaches, Bitcoin has been underperforming. According to CoinMarketCap data, the trading price of Bitcoin was $96,222 at the time of this article's publication.
This indicates a growing interest among Bitcoin investors
A recipient is essentially a buyer who accepts the best instant price offered by the market. An increase in this metric indicates a rise in investor interest and purchasing pressure.
On the chart, higher lows indicate an upward trend, with each low being higher than the previous one. Looking at CryptoQuant's charts, Bitcoin recipients' purchasing volume fell to a low of 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 strongly indicate that traders may be forming an upward trend.
Burrakesmeci stated: 'Although the market may be overheated and undergoing adjustments, the continued rise in recipient purchasing volume suggests that we may see an increase in Bitcoin's price in the coming days.'
Traders are seeing familiar patterns suggesting a historical repetition for Bitcoin
Bitcoin first broke the $100,000 mark on December 5 and has remained below that level since December 19. Currently, Bitcoin's price has fallen by 11.15% from the historical high of over $108,300 set on December 17.
Related: Bitcoin price drops 4% as TradingView's 'glitch' causes dominance to drop to zero
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 the spot Bitcoin exchange-traded fund (ETF) 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 action is strikingly similar to what it was nearly a year ago.'
Anonymous cryptocurrency trader Titan of Crypto expressed a similar view to his 110,100 followers, stating, 'It's not to say this will happen, but BTC's price action is very similar to the end of 2023—while the pattern for 2024 seems to be about 3 weeks ahead of schedule.'