The co-founders of the blockchain analysis platform Glassnode are laying out how Bitcoin (BTC) can reclaim six figures and more.
Glassnode and Swissblock co-founders Jan Happel and Yann Alleman, who share the social media handle Negentropic, start by comparing BTC’s current situation to a similar scenario from a few years back.
“Let’s look at the period from December 2020 to February 2021, which corresponds to a similar cycle phase and comparable price action.
At that time, the outflow of liquidity coincided with a price correction, but network growth persisted. Likewise, when the price stabilized and a new influx of liquidity began, the price rebounded strongly.”
According to Negentropic, liquidity could be the deciding factor in a Bitcoin price pump.
“This suggests that we could potentially see a price pump once liquidity flows back into the market and the price does not drop to lower levels as long as network growth remains at bullish levels.”
In an accompanying Swissblock post, the market intelligence firm suggests that profit-taking must calm down before BTC can rise again.
“Profit-taking above $90,000 and near $100,000 has persisted among market participants (no surprise, as long-term holders continue to take profits). However, this selling pressure is gradually losing intensity.
For price momentum to resume within the bullish territory, profit-taking must stabilize, and we need to avoid large volumes of selling that create spikes on the chart.”
BTC is trading for $92,077 at time of writing, down 1.7% on the day.
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