A closely watched crypto analyst says he believes Bitcoin (BTC) is on the verge of a Thanksgiving breakout.
In a new thread on the social media platform
He believes that Bitcoin holders will convince family members at holiday gatherings to buy the flagship digital asset, driving up its price. The trader also says that Bitcoin may give a bullish signal on the daily chart.
“Tonight, the minters are going to tell their families about Bitcoin, which will create a sort of Thanksgiving rally. This is why I think BTC is on track for a recovery to $99,000, and the technicals support this. I could be wrong, so I leave a tight stop-loss.”
Then the trader used the In/Out of the Money Around Price (IOMAP) metric – which classifies crypto addresses as making a profit, breaking even, or losing money – to determine a key support level for Bitcoin.
“A key demand zone for Bitcoin to watch is $93,580, where 667,000 addresses bought almost 504,000 BTC. Staying above this support level is a must to prevent these holders from selling!”
Earlier this week the trader made suggested Bitcoin may be set for a short squeeze. A short squeeze occurs when traders who borrow assets at a certain price in the hope of selling them at a lower price to pocket the difference are forced to buy back the borrowed assets when momentum turns against them. triggering further rallies.
“More than $409 million in long positions have been liquidated in the past 24 hours [on November 25th]. Now $772 million in short positions risk liquidation if Bitcoin returns to $98,000!”
The trader too say that Bitcoin may still be far from its cycle peak, based on the MVRV (Market Value to Realized Value) Z-score, which aims to measure whether BTC is “undervalued” or “overvalued” by comparing its market value to its realized value . An asset tagged with a low MVRV Z-score is considered undervalued, while assets with a high MVRV Z-score are considered overvalued.
“Bitcoin is far, far, far away from a market top!”
Bitcoin is trading at $95,228 at the time of writing.
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Generated image: Midjourney
