Despite ongoing crypto market jitters, the bull market for Bitcoin (BTC) remains robust, according to the founders of crypto analytics firm Glassnode.
In a tweet on Friday, the duo known by the pseudonym “Negentropic” on X (formerly Twitter) shared their insights on Bitcoin’s ongoing consolidation phase and the broader cryptocurrency market.
The pundits emphasized that Bitcoin’s current consolidation does not signal the end of the bull market. They highlighted a “Cup & Handle” pattern observed in the Nasdaq, whose movements have increasingly correlated with Bitcoin’s. This pattern, often viewed as a bullish indicator, suggests a significant target level yet to be reached. This indicates that the bull market is still intact and that future prices will likely increase once the consolidation phase concludes.
“We have posted this clear “Cup&Handle” structure in Nasdaq before. And it is still in play. It suggests a MINIMUM target of 21,700-ish. We are not there yet! So – Bull Market seems to be intact – and we also think that the minimum target will be surpassed.” They wrote.
The duo’s analysis follows their remarks on Thursday regarding the market’s current sentiment, which they noted seems to be influenced by “half-way jitters.” They further reassured their followers that their long-term target for Bitcoin remains unchanged, predicting a rise to around $110,000 before the bull market peaks, noting that the “consolidation [they] see now is merely a retest of the former ATH-area [2021].”
They view the current consolidation as a necessary retest of previous all-time high levels and anticipate that Bitcoin needs to surpass key price points at $64,000 and $70,000 to confirm the continuation of the bull trend.
Negentropic’s analysis comes amid sustained bearish pressure on Bitcoin. On June 5, Bitcoin’s price dipped below $54,000, driven by significant coin movements from the Mt. Gox exchange and the German government’s sale of a substantial BTC stash. These events triggered panic selling, with nearly 30,000 BTC, worth $1.73 billion, entering exchanges this week.
CryptoQuant analysts also highlighted this development, noting that long-term Bitcoin holders have realized significant profits, contributing to the recent price drop.
“The highest activity was observed among holders who had kept their Bitcoin for 5-7 years,” analysts IT-Tech from the firm noted on July 4.
That said, following this week’s events and the break below the $60,000- $61,000 support range, some analysts caution that Bitcoin’s price may experience further declines before stabilizing. Ali Martinez, a prominent analyst, noted the lack of significant support for Bitcoin, with a key demand level of around $47,000. Martinez believes Bitcoin must close and hold above $61,000 for the bull run to resume.
Experts from 10x Research also warned that Bitcoin’s sharp decline might not stop at $57,000, potentially pushing the price to $50,000 due to weakened buying pressure and increased selling orders.
At press time, BTC was trading at $55,335, slightly recovering from the morning’s 6.7% flash drop.
Leave a Reply
This site uses Akismet to reduce spam. Learn how your comment data is processed.
