A co-founder of crypto analytics firm Glassnode says Bitcoin (BTC) is gearing up for a bull run after a dip.
Pseudonymous crypto analyst Negentropic, one of the co-founders of Glassnode, tells are 55,200 Twitter followers that after Bitcoin’s plunge to the $25,000 level, the king crypto is likely gearing up for a rally.
He shares a chart that shows Bitcoin retesting a “neckline” and likely entering a consolidation phase before moving up.
In technical analysis, a neckline is a trend line drawn below a head and shoulders pattern and is used as a key indicator of a trend reversal.
Statement: BTC started the week with a plunge, touching the $25,000 mark.
Why: Blame the Binance FUD (fear, uncertainty and doubt) – thanks to the SEC lawsuit. BUT every cloud has a silver lining! BTC shows signs of overselling.
Our short-term forecast? The near-term outlook suggests this is a solid opportunity to accumulate, especially if we revisit the low $25,000 area. A big step is in the pipeline and the market is buzzing.”
He predicts price volatility before the rally based on the activity of weak longs, a term used to describe short-term traders who are unwilling to hold their positions due to market swings.
“BTC spot demand is driving the move. Some weak desires prey on this point. Buy the dips.”
He too say that a bullish indicator for Bitcoin is the fact that BTC had support at the USD 25,000 level as it fell on the US Securities and Exchange Commission (SEC) news against Binance. He also notes that he looks to the aggregated open interest STABLECOIN Margined indicator for a breakout signal.
“It’s make or break for shorts. A failed attempt to get below $25,000 with the Binance FUD is probably the most bullish signal of 2023.
Keep a close eye on open interest: >240,000 BTC is a sign of direction. Another move is coming.”
Bitcoin is trading at $26,437 at the time of writing, down 2.1% in the past 24 hours.
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Image generated: Midway through the journey