Author: Ciaran Lyons, CoinTelegraph; Compiled by: Tong Deng, Jinse Finance
An analyst said that a widely used trading indicator that tracks buyer demand for the cryptocurrency exchange Binance suggests that Bitcoin may have the potential to retest the psychological price level of $100,000 by the end of the year.
According to CoinMarketCap data, as of the time of writing, the trading price of Bitcoin is $96,222.
Signals Increase Bitcoin Investor Interest
Takers are essentially buyers who accept the best immediate price offered by the market. The increase in this indicator suggests increased investor interest and buying pressure.
Bitcoin: Taker Buy Volume - Binance chart. Source: CryptoQuant
On the chart, higher lows indicate an uptrend, with each low higher than the previous one. Looking at the CryptoQuant chart, the buying volume of Bitcoin buyers reached a low of below $5 billion on December 1. By December 15, it was slightly below $6 billion, and around December 25, it reached around $6 billion.
Three "higher lows" are generally a strong indicator for traders, suggesting that an uptrend may be forming.
Burrakesmeci said: "Although the market may be overheated and experience an adjustment, the continued growth in taker buy volume suggests we may see Bitcoin prices rise in the coming days."
Traders See Familiar Patterns Suggesting Bitcoin History Repeating
Bitcoin has been below $100,000 since December 19, after first breaking above $100,000 on December 5. Currently, Bitcoin is down 11.15% from its 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.
Within the three months starting from December 2023, Bitcoin rose nearly 90% after the spot Bitcoin ETF was approved in January.
"I just noticed that the price movement of Bitcoin is very similar to the price movement about a year ago," anonymous cryptocurrency trader Jack said in a post on December 26.
Anonymous cryptocurrency trader Titan of Crypto expressed a similar view to his 110,100 X followers, "Not saying this will happen, but the price action of BTC is very similar to the end of 2023 - the 2024 pattern seems to be about 3 weeks ahead of schedule."
