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Glassnode's co-founder, who goes by the name "Negentropic" on Twitter, hints that Bitcoin might be building the basis for a move toward $34,000.
In a new tweet, "Negentropic" highlights that Bitcoin's sideways trading could be paving the way for bullish momentum. He explains that Bitcoin's range-bound trading between $31,250 and $29,640 enables a consolidation period, reestablishing positive momentum. He pointed out that the Swissblock Risk Signal remains constant at zero, implying that there is still room for upward movement.
Bitcoin's Sideways Trading Sets Stage for Bullish Momentum
— 𝗡𝗲𝗴𝗲𝗻𝘁𝗿𝗼𝗽𝗶𝗰 (@Negentropic_) July 6, 2023
🔸Why:
Bitcoin's range-bound trading between $31.25k and $29.64k allows for a consolidation period, re-establishing bullish momentum. The Swissblock Risk Signal remains stable at 0, supporting potential upward movement.… pic.twitter.com/m5kjLb1qCw
Drawing from these facts, the Glassnode co-founder suggests the possibility of Bitcoin breaking above $31,250, thus providing a strong foundation for buyers to target the $33,000 and $34,850 resistance levels.
"Conclusion: BTC likely to break above $31.25k, providing a strong foundation for buyers to target $33,000 and $34,850 resistance levels," Negentropic tweeted.
On the other hand, if Bitcoin makes a contrary move and the support at $29,640 breaks, the 50% retracement level near $28,230 might be viable support.
Glassnode, in a recent tweet, highlights that Bitcoin is trading in a defined local range: "When anchoring from the November 2021 ATH, the Bitcoin spot price continues to oscillate between the -50% and -61.8% retracement levels, marking a defined local range."
Bitcoin sets new yearly high
At the time of writing, BTC was up 1.19% in the last 24 hours to $30.708. In today's session, the largest cryptocurrency reached fresh yearly highs of $31,525 before falling slightly.
Bitcoin bulls were reawakened when BlackRock Inc. Chief Executive Officer Larry Fink referred to Bitcoin as an "international asset" and stated that the money management firm intends to use its clout to make the cryptocurrency less expensive and easier to invest in.
Last month, the money management firm submitted filings to launch an exchange-traded fund that invests directly in Bitcoin, triggering a wave of similar filings and a surge in Bitcoin's price to more than $30,000. Bitcoin gained over 12% in June alone and is up more than 80% year to date.
Meanwhile, the Bitcoin balance held on exchange addresses continues to hemorrhage, falling to a value of 2.26 million BTC, the lowest balance held since March 14, 2018 (1,939 days ago), Glassnode stated in a new tweet.
Dan Burgin
Alex Dovbnya