The co-founders of blockchain analytics 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, participation that the Bitcoin Fundamental Index (BFI) is starting to signal a breakout.
The BFI evaluates various aspects of the Bitcoin market, including wallet activity and transaction volume. When it increases, the chances of a market rally increase.
The analysts predict that Bitcoin will soon reach $110,000. However, they say Bitcoin must first convincingly break the 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 before launching a bullish move from the $101,500-$102,500 zone.
The target is the previous high of $108,000-$110,000, but first the $104,000-$106,000 zone must be broken with strength and volume.”
The analysts too participation that the number of short-term investors making losses on their investments during recent market volatility is declining, indicating a more bullish outlook.
“Do we need a new category of holders? Short-term holders, once known for selling quickly at a loss, are evolving. They are now showing resilience, tolerating price drops and reacting less emotionally to sudden crashes. Selling pressure continues to decline, indicating a change in behavior. These investors bridge the gap between impulsive sellers and steadfast holders. What should we call them? Steel hands? Iron hands? Something stronger? Let us know!”
Finally, the analysts warn that Bitcoin could correct to a low of $97,200 if it loses the $101,500-$102,500 range as support.
“Next steps: Hold $101,500-$102,500 to maintain momentum. If you lose it, BTC could go to $97,200-$98,500. Immediate goal: $104,00-$106,000. If liquidity increases here, BTC could aim for $108,000-$110,000, a key liquidation zone for bears. Consolidation is the key to further profits!”
Bitcoin is trading at $104,797 at the time of writing.
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