Analyst Bullish On Bitcoin, Claims Major Accumulation If OI Goes Down

Bitcoin has remained relatively stable in the face of recent negative news regarding the Binance case. The consolidation is still visible, and a breakthrough to $38,000 is possible.

Following the release of the most recent Fed minutes, in which the FOMC declared no rate hikes, Bitcoin’s price fell sharply, falling 4%. As a result, the whole cryptocurrency market fell to $1.42 trillion, indicating a pessimistic market sentiment.

At press time, the price of Bitcoin (BTC) stands at $37,480.13, reflecting a 2.68% increase in the last 24 hours and a 0.02% rise over the past 7 days. The 24-hour trading volume is reported at $15.38 Billion.

Analyst Claims Bitcoin Could Test $35K Support

Bitcoin (BTC) experiences fluctuations on lower timeframes, marked by the closure of short and long positions, leading to a decrease in Open Interest (OI) as per the crypto analyst CrediBull.

In response to ongoing market turmoil, traders engage in de-leveraging efforts, adjusting their positions for potential risks. The recent updates in DoJ finding Binance guilty of money laundering, and suing them with a $4 Billion penalty have created a FOMO in the market.

The analyst compares the current scenario to previous events, such as the SEC case against Coinbase, by analyzing historical trends. Despite an expected response at a critical zone, there is a breach, with funding briefly turning negative before returning to a low/neutral level.

The analyst further argues that the open interest in lower timeframes such as in the 1-hr graph is reducing as more and more accumulation is taking place. A significant de-leveraging is evident as OI retraces to levels preceding the last market upswing. Notably, Coinbase spot experiences buying activity while perpetual futures sellers close positions, aligning with expectations for buyers to step in.

The bounce from a demand zone at 35.5k, in particular, is significant for the ongoing consolidation. The market is keeping a tight eye on these levels, evaluating the implications for the broader accumulation range.

Analysts see a short-term range-bound scenario between 35k and 37k as spot premium returns, indicating a potential market bottom.

Recently, Bitcoin’s hash rate recorded an all-time high at 546.58M on 19 Nov 2023. The growing hash rate is a part of approaching Bitcoin halving which is significant to raise the difficulty level of the blockchain.

Overall, Bitcoin has shown none to minimum movement to the Binance verdict and is on the green side today.

Also Read: Binance’s $4.3 Billion Settlement Fuels Predictions Of Bitcoin ETF Surge

Bitcoin Price Performance Till Now

As soon as Binance pleaded guilty, Bitcoin net outflow from Binance exceeded over 15K. This change marks the FOMO among investors which was carried by the fact that Binance has to settle $4 Billion with DoJ.

On the daily chart, Bitcoin is exhibiting an inclined channel pattern which indicates a bearish outcome in the future. This is the same as the analyst predicted above. As the accumulation gets weaker, the current price level will definitely test the $35K support.

On the other hand, the Relative Strength Index (RSI) is at 56 which marks a neutral bear-bull ratio.