The co-founder of a cryptanalysis company, Glassnode, says that Bitcoin (BTC) is preparing for a bull run after a crash.
Pseudonymous cryptanalyst Negentropic, one of the co-founders of Glassnode, says his 55,200 Twitter followers that after Bitcoin’s plunge to the $25,000 level, the king of cryptocurrencies is likely preparing for a rally.
He shares a chart showing that Bitcoin is retesting “neckline” and likely entering a consolidation phase before moving higher.
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 lower, touching the $25,000 limit.
Why: Blame it on Binance FUD (Fear, Uncertainty, and Doubt), thanks to the SEC lawsuit. BUT every cloud has a silver lining! BTC shows signs of oversold.
Our short-term forecast? The short-term outlook suggests that 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 packed.”
He predicts price volatility before the rally based on weak long activity, which is a term used to describe short-term traders who are unwilling to hold their positions through market fluctuations.
“BTC spot demand drives the move. Some weak longs chasing at this point. Buy the sauces.
He too says One bullish indicator for Bitcoin is the fact that BTC held support at the $25,000 level when it dipped on the US Securities and Exchange Commission (SEC) news against Binance. He also notes that he is watching the Aggregate Open Interest STABLECOIN Margin indicator for a breakout signal.
“It’s about make it or break it for the shorts. A failed attempt to break below $25,000 with Binance FUD is probably the most bullish sign of 2023.
Keep an eye on open interest: >240,000 BTC is a direction signal. Another movement is coming.
Bitcoin is trading at $26,437 at the time of writing, down 2.1% over the past 24 hours.
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