The co-founder of Glassnode, who goes by the handle “Negentropic”, discusses the price of Bitcoin.
The Glassnode co-founder shares his thoughts in a new tweet, emphasizing that liquidity remains the key to BTC price. He provides analysis and notes that Bitcoin’s recent surge above $42,200 was a neutral impulse that brought liquidity to long positions.
He said Bitcoin prices are currently moving towards closing the liquidity gap above $42,000, indicating potential volatility and liquidations of approximately $659 million. Stated.
Based on this, negentropic He said the bullish momentum could trigger the liquidation of $1 billion in short positions, pushing the market higher. This scenario could cause a “short squeeze.” This occurs when a large number of short sellers are forced to exit their positions, causing the asset’s price to rise rapidly.
This bullish outlook coincides with reduced selling pressure from investors profiting from Grayscale Bitcoin Trust (GBTC).
GBTC outflows appear to have slowed in recent days, with China’s central bank announcing a $140 billion injection into the financial system.
The Glassnode co-founder said in an earlier tweet that a liquidity surge has begun as China attempts to prop up the market with massive amounts of liquidity. He believes this could be the catalyst that pushes cryptocurrencies and stock markets into the first half of 2024.
Bitcoin could reach $50,000 in Q1 2024
BTC rose to a high of $42,839 on January 28th, but has fallen to around $42,000 at the time of writing. The latest Bitcoin price action is part of a recovery rally that began last week after falling to $38,500.
Markus Thielen 10x more research He predicts that Bitcoin price could reach $50,000 by the end of the first quarter.
“Bitcoin rallied just short of the 42,800 short-term resistance level suggested by the November-January trend channel. The 43,000-44,000 area will likely be a minor resistance area, but Bitcoin has broken out and will continue to move forward in 2019. We expect to regain levels above 50,000 by the end of this quarter,” Thielen tweeted on Monday.
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