Bitcoin Trader Identifies Optimal and Riskiest Entry Points for BTC Currently
Bitcoin (BTC) has been trading within a narrow price range for the past 18 days, establishing important levels of support and resistance. These levels serve as potential entry points for traders, but also carry a high level of risk as they determine the future direction of the leading cryptocurrency.
In a recent post on X, a well-known Bitcoin and cryptocurrency trader known as Credible Crypto, warns of an upcoming period of volatility. According to him, BTC is currently at a high-risk entry point as it approaches the resistance level of the range. This suggests a possible short-term retracement, with the target being the range lows, which would present an ideal entry point at a price support level.
Credible Crypto attributes the expected volatility to a significant increase in open interest (OI), despite the tight trading range. This leads the trader to anticipate a short or long squeeze that could potentially cause a deviation from the range and result in a breakout.
While both scenarios are possible, Credible Crypto expresses a bullish bias and hopes for a short squeeze that would lead to an upward breakout.
Bitcoin open interest and price analysis support Credible Crypto’s predictions. Data retrieved from CoinGlass and TradingView on June 5 shows that BTC’s open interest in futures is approaching its all-time high, currently standing at $37.66 billion. The previous record of $39 billion could soon be surpassed, indicating a strong speculative demand.
On the daily chart, BTC/USD has been trading within a range of $60,000 to $72,000 for the past three months, with two notable deviations. One deviation reached a high of $73,805, while the other dropped to $56,535. Within this wider range, there is a narrower zone that Credible Crypto mentioned in his analysis.
This smaller range has a resistance level at $72,000 and a higher support level at $66,000. The trader considers the latter to be an ideal entry point for Bitcoin if it ever reaches that level.
However, it’s worth noting that Bitcoin has experienced a decrease in transaction volume and spot trading volume, while speculative volume on BTC futures and exchange-traded funds (ETFs) has increased. This indicates a shift towards speculative trading and highlights the high volatility of cryptocurrencies, particularly during times of uncertainty in financial markets.
Investors should consider different analyses and indicators to make informed decisions and manage their positions in this speculative market. It’s important to remember that investing in cryptocurrencies carries risks, and individuals should carefully consider their own financial situation and risk tolerance before making any investment decisions.
Disclaimer: The content provided in this article is for informational purposes only and should not be considered investment advice. Investing in cryptocurrencies involves a high level of risk, and individuals should be aware that their capital is at risk when investing.
