The co-founder of crypto analytics firm Glassnode believes a Bitcoin (BTC) fund has formed, setting the stage for a big rally.
Pseudonymous cryptanalyst Negentropic, one of the co-founders of Glassnode, says its 54,900 Twitter followers that two simple moving averages (SMAs) show that a Bitcoin breakout is likely imminent.
According to the analyst, the 200-day SMA, a key indicator traders use to determine overall long-term market trends, has held up as a support line for BTC. He says that the 50-day SMA is about to cross the 200-day SMA, indicating, based on past performance, that Bitcoin is likely to make big gains any day now.
“Bitcoin’s bottom is in. The shorts ran out after numerous failed attempts to break below the 200-day SMA, which is solid support. Bullish crossover of 50-day SMA over 200-day SMA, it’s a matter of when BTC shuts down.”
Next, the cryptanalyst reinforces his argument for a Bitcoin rally by predicting that stocks are at the start of a bull. He bases his prediction on a chart by macroeconomist Henrik Zeberg showing the performance of E-Mini NASDAQ 100 futures.
“Bullish chart complete! No technical weakness.
Nasdaq is climbing the wall of worry!
Driven by five major stocks for now, but will be extended to smaller stocks soon.
Pro Tip: Look for a bull flag pattern (two rallies with a short consolidation pullback period) as a bullish indicator.”
Finally, the cryptanalyst believe that the Federal Reserve will pause, not increase interest rate hikes, next month after making a series of rate hikes since last year in an effort to reduce inflation.
He predicts that Bitcoin will skyrocket to the $35,000 price level as a result of liquidity returning to the markets.
“Probability of a pause in June most likely result after [Federal Reserve Chair Jerome] Powell’s remarks: The risk of doing too much and doing too little is evenly balanced. DAX (Deutscher Aktienindex, a German stock index) ATH (all-time high), SPX (S&P 500) above 4,190, BTC at $35,000 is inevitable.”
Bitcoin is trading at $27,202 at the time of writing, up 1.3% over the past 24 hours.
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