Bitcoin’s volatile market has always been a subject of intense scrutiny, and experts use various metrics to predict its ups and downs. One such expert, CrediBULL Crypto, has shared an insightful analysis using the Aggregate OI metric on the X platform.
Over the past year, Aggregate OI has been a remarkable predictor for every major top and bottom of Bitcoin (BTC). Its use on lower timeframes is also quite insightful. Historically, an Aggregate OI reaching 8.9B typically signifies a local top, while a dip to about 7.4B marks the bottom. With the current OI hovering around 8.6B, CrediBULL suggests the proximity to another local top.
Aggregate OI supports the idea shared below and use of this metric has nailed every major top and bottom on $BTC for over a year.
— CrediBULL Crypto (@CredibleCrypto) October 5, 2023
If you want to see my analysis of this metric over higher TF PA you can see it here: https://t.co/ewFmYx7bmK
Now, we can use the same method of… https://t.co/sXlUb4bZpb pic.twitter.com/0cmvIIuz9q
Despite its seemingly bearish outlook, there’s no reason for alarm unless Bitcoin drops below $26,950. This price point is the critical line in the sand for Bitcoin’s bullish market structure on lower timeframes. If, however, Bitcoin pushes past the resistance at $30,200, it could signify a robust bullish momentum. This breakthrough could lead to a breakout from the current OI range, aiming for a higher time frame OI range of 11B. Notably, Bitcoin is changing hands at $27,655, a 0.12% drop in the past 24 hours and a 4.72% rise in the past week.
CrediBULL doesn’t solely rely on Aggregate OI. He brings to attention another concerning metric – the OBV (On-Balance Volume). At present, OBV is approaching what CrediBULL refers to as “danger” levels due to its lower high. Ideally, a rally without a steep increase in OI would indicate a healthier upward movement, one with a greater chance of sustainability.
Another metric that is concerning me about this breakout:
— CrediBULL Crypto (@CredibleCrypto) October 5, 2023
Aggregate OI does not look the healthiest atm. Been using ranges on this metric for some months now and have found it to be an excellent way to add confluence to local tops and bottoms.
OBV is now reaching local… https://t.co/KTFvzf6rAP pic.twitter.com/QzB6FQfDNg
In conclusion, CrediBULL Crypto’s analysis sheds light on the multifaceted nature of Bitcoin’s journey. The Aggregate OI metric and OBV levels provide valuable insights into potential market movements. As Bitcoin hovers between crucial levels, investors and enthusiasts alike remain on the edge of their seats, awaiting the next twist in the crypto saga.
