Here’s How Bitcoin Could Potentially Witness a Price Pump, According to Glassnode Co-Founders

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.”

Source: Negentropic/X

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.

Generated Image: Midjourney

Source