The co-founders of the blockchain analysis platform Glassnode say Bitcoin (BTC) may be gearing up for a series of rallies based on key metrics.
Glassnode and Swissblock co-founders Jan Happel and Yann Alleman, who share the social media handle Negentropic, say that the Bitcoin Fundamental Index (BFI) is starting to signal a breakout.
The BFI evaluates several aspects of the Bitcoin market, including wallet activity and transaction volume. When it increases, the chances of a market rally increase.
The analysts predict Bitcoin may soon hit $110,000. However, they say that Bitcoin must first convincingly break through resistance at $106,000.
“Get ready for the next bullish move: Bitcoin has held above $100,000 while showing improvements in liquidity and network growth. This indicates stability for launching a bullish movement from the $101,500-$102,500 zone.
The target is the previous high at $108,000-$110,000, but first, the $104,000-$106,000 zone needs to be breached with strength and volume.”
The analysts also say that the number of short-term holders taking a loss on their investments during the recent market volatility is declining, suggesting a more bullish outlook.
“Do we need a new category of holders? Short-term holders, once known for quick selling at losses, are evolving. They’re now showing resilience, tolerating price drops, and reacting less emotionally to sudden crashes. Selling pressure continues to fall, signaling a shift in behavior. These investors are bridging the gap between impulsive sellers and steadfast holders. What should we call them? Steel hands? Iron hands? Something stronger? Let us know!”
Lastly, the analysts warn that Bitcoin may correct to as low as $97,200 if it loses the $101,500-$102,500 range as support.
“Next steps: Hold $101,500-$102,500 to sustain momentum. Losing it could send BTC to $97,200-$98,500. Immediate target: $104,00-$106,000. If liquidity gathers here, BTC may aim for $108,000-$110,000, a key bear liquidation zone. Consolidation is key for further gains!”
Bitcoin is trading for $104,797 at time of writing.
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