Major Move Coming for Bitcoin (BTC) As Market Forms Bullish Pattern: Glassnode Co-Founder

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.”

Source: Negentropic/Twitter

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.”

Source: Negentropic/Twitter

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.”

Source: Negentropic/Twitter

Bitcoin is trading for $26,437 at time of writing, down 2.1% during the past 24 hours.

Generated Image: Midjourney

Source