A crypto analytics firm Glassnode co-founder says Bitcoin (BTC) is gearing up for a bull run after a dip down.
Pseudonymous crypto analyst Negentropic, one of Glassnode’s co-founders, tells his 55,200 Twitter followers that after Bitcoin’s plunge to the $25,000 level the king crypto is likely setting up for a rally.
He shares a chart that shows Bitcoin is retesting a “neckline” and likely entering a consolidation phase before rallying upward.
In technical analysis, a neckline is a trendline drawn below a head and shoulders pattern and used as a key indicator of a trend reversal.
“Statement: BTC started the week with a plunge, touching the $25,000 boundary.
Why: Blame it on 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 prognosis? The short-term outlook suggests this is a solid opportunity to accumulate, especially if we revisit the low $25,000 area. A major move is on the horizon, and the market is teeming.”
He predicts price volatility before the rally based on the activity of weak longs, which is a term used to describe short-term traders who are unwilling to hold their positions through market fluctuations.
“BTC spot demand driving the move. Some weak longs chasing at this point. Buy the dips.”
He also says that a bullish indicator for Bitcoin is the fact that BTC held support at the $25,000 level when it dipped on the news of the U.S. Securities and Exchange Commission (SEC) against Binance. He also notes that he is watching the Aggregated Open Interest STABLECOIN-margined indicator for a breakout signal.
“It’s make it or break it for shorts. A failed attempt to break 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 for $26,437 at time of writing, down 2.1% during the past 24 hours.
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