Bitcoin's recent consolidation period may hint at a significant price movement, according to Glassnode co-founder Yann Allemann.
Allemann outlined several factors contributing to this prediction, including exhausted short-sellers, strengthening support levels, and an anticipated bullish trend.
Bitcoin's price has been hovering between $26,500 and $27,100, with the market demonstrating signs of "extreme fear."
However, Allemann noted this typically leads to bullish moves. He pointed to the failure of the price to break below the 50 and 200 Simple Moving Averages (SMAs), which are now acting as solid support levels that have withstood five tests.
Moreover, the recent "golden crossover" event, where the 50 SMA crossed above the 200 SMA, confirms a bullish trend.Additional factors suggesting an impending price surge include the tightening of Bollinger Bands, which often precedes substantial market moves.
The analyst suggests that the longer Bitcoin trades within the current consolidation zone, the more short sellers will exhaust, increasing the likelihood of an upward move.
However, he also noted that the Relative Strength Index (RSI) is not yet showing momentum signs necessary for triggering the anticipated price surge.
Data from CoinGecko shows that Bitcoin is currently trading at $27,381.60, with a 24-hour trading range sitting between $26,590.05 and $27,416.89. The flagship cryptocurrency is up roughly 1.5%. The market cap stands at approximately $530.55 billion.
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