Glassnode co-founders Jan Happel and Yann Alleman, also known as Negentropic, have raised concerns about a potential pullback in the price of Bitcoin (BTC) despite it currently maintaining a crucial support level. According to the co-founders, the low trading volume indicates a risk of a sudden correction of more than 7% if Bitcoin fails to hold above $91,500 as support.
One of the factors contributing to market volatility, as highlighted by the analysts, is the latest US job data released on Friday morning. The co-founders suggest that this data could impact Bitcoin’s price movement in the near future.
On the bearish side, the potential sale of a large amount of Bitcoin seized by the US government from the Silk Road darknet marketplace is also a cause for concern. The uncertainty surrounding this sale could further weigh on Bitcoin’s price, potentially leading to a drop below $92,500 and a move towards $90,000.
Despite these bearish indicators, the co-founders point out some bullish signals for Bitcoin in the coming months. They note a declining amount of BTC on crypto exchanges, indicating a shift towards holding Bitcoin in cold storage for the medium term.
Furthermore, the analysts observe that the number of short-term holders taking losses during the current market correction is not as high as in previous corrections. This suggests a more positive outlook, with short-term holders showing patience and confidence in selling for a profit.
At the time of writing, Bitcoin is trading at $93,490. The co-founders emphasize the importance of monitoring key metrics and market trends to stay informed about potential price movements in the cryptocurrency market.
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(Source: Negentropic/X)
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