Darryl Wang, a Chinese analyst and founder of investment firm Tangent, claimed that current price levels for Bitcoin (BTC) are favorable for a bull run.
According to Wang, although market participation is currently weak, the fact that the Bitcoin price has not fallen below the $84,000 support level indicates that selling pressure has largely decreased.
Wang adds that trading volumes have narrowed significantly recently and order books have become thinner. Under these conditions, he argues, even the entry of a limited number of large buyers into the market could create a rapid and sharp upward movement in price. He points out that the current liquidity structure creates fertile ground for sudden price jumps.
Wang also touched upon the calendar effect, noting that January has historically been a period of high volatility. He predicts that as December draws to a close, the market’s stagnation could give way to sharp price movements again, and volatility could increase in the coming weeks.
At the time of writing, the price of Bitcoin is trading at $87,198.
*This is not investment advice.
