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⚡Bitcoin Poised for Major Rally⏫

Croxroad

24 May 2024 — 4 min read

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🛣️ Bitcoin’s Bullish Outlook

A crypto analyst has forecasted an “ultra bull scenario” for Bitcoin, highlighting key support levels and technical patterns that suggest a price rally above $80,000 in this market cycle. In a recent X (formerly Twitter) post, a crypto analyst identified as ‘CrediBullCrypto’ has doubled down on his previous prediction of an ultra-bull scenario for Bitcoin in the future. The analyst’s insights on Bitcoin’s recent activities suggest that the downside risk may be less significant than previously anticipated, paving a bullish path for a massive upside for Bitcoin.

Sharing a graphical chart of Bitcoin’s price actions from April to May 2024 in a YouTube video, CrediBullCrypto predicted that Bitcoin could see its price rising above $100,000 in this projected ultra-bull scenario. The focal point of his analysis was based on the Open Interest (OI) in Bitcoin’s perpetual futures on Binance, the world’s largest crypto exchange. According to the crypto analyst, Open Interest has reached 78,000 BTC, significantly higher than its baseline of 64,000 BTC. CrediBullCrypto revealed that this current Open Interest was in a danger zone. This is because the 14,000 BTC difference typically indicates elevated market activities, which often precede volatile price movements.

Additionally, CrediBullCrypto revealed that a single unidentified Bitcoin whale was responsible for approximately 10,000 BTC of the increased 14,000 BTC Open Interest. This means that the anonymous whale controls 70% of all the added Open Interest on Binance perpetual futures since the baseline. He also disclosed that in the scenario where the anonymous whale can withstand 10% to 15% downward pressure without liquidating their assets, the actual available Open Interest that would be vulnerable to a decline would be only 4,000 BTC, instead of the initial 14,000 BTC addition. The analyst revealed that out of the 4,000 BTC, some would be directional shorts, noting that the net long positions at risk would be even lower. Given this theory, CrediBullCrypto argued that the potential for a downside is more limited. As a result, the ultra bull scenario where Bitcoin’s price surges to new all-time highs was worth considering.

🇺🇲 Historic High

U.S.-listed spot bitcoin exchange-traded funds (ETFs) reached a new record yesterday, with holdings surpassing 850,000 BTC in custody. This milestone eclipses the previous high of over 845,000 BTC set in early April. Grayscale’s GBTC remains the largest holder among these ETFs, possessing 289,300 bitcoins valued at over $20 billion. It is closely followed by BlackRock’s IBIT, which holds 283,200 bitcoins worth $19.6 billion. On the smaller end, the Hashdex Bitcoin ETF holds just $12 million in bitcoin. Data from @HODL15Capital indicates that these spot ETFs collectively ended Wednesday with their eighth consecutive day of net inflows, accumulating over 24,500 BTC in this period. This marks a significant reversal from the prior weeks, which saw some of the largest ETFs experiencing zero inflows or even net outflows on certain days.

The crypto industry witnessed a major policy victory in the U.S. as the House of Representatives approved a comprehensive bill to regulate digital asset markets. The Financial Innovation and Technology for the 21st Century Act (FIT21), which passed with a vote of 279-136, saw bipartisan support, with many Democrats crossing party lines. This legislation marks the first time a significant crypto bill has successfully passed one chamber of Congress. This policy shift is indicative of a growing acceptance and recognition of digital assets within the U.S. regulatory framework, providing a clearer path forward for the industry.

In related developments, there is widespread bullish sentiment regarding the approval of a spot ether ETF in the U.S. Analysts have significantly increased the approval odds, now estimating a 75% chance up from an earlier 25%. This optimism reflects the ongoing positive momentum in the crypto market, driven by regulatory advancements and increased institutional interest in digital assets.

🤩 Proof of Stake

Proof of Stake (PoS) is a consensus mechanism used by some blockchains that requires verifiers to lock up, or stake, a certain amount of cryptocurrency to gain the opportunity to add new blocks to the blockchain. The more coins stacked, the higher the chances of being selected as a validator. This system includes a strong disincentive to cheat: if a validator attempts to approve fraudulent transactions, they risk losing their stacked coins.